Fisher just admitted price of oil higher becuase of specs

[olias]

Quote from Neenisti:

You think "speculators" and "manipulators" are one in the same?

Many have tried to corner markets and failed. They failed for a reason. Commodities can't be manipulated for long periods. The more unique individuals participating in an individual commodity then the less likely that specific commodity can be manipulated and there are many many many people trading Crude.

This is the conclusion that I have come too also.

To state it another way, 'speculators' can, and do 'get it wrong'. There will be times that they overvalue a commodity, but eventually prices come back in line. And there will also be times that they undervalue a commodity and that's when the consumer benefits from speculation. All in all, the markets and the ability for speculation, means that the prices we all pay at the store and at the pump are much more consistent, and overall, cheaper than we would pay if left up to the simple forces of supply and demand. This is the function of commodity markets.

I love Obama, but he's got this one wrong, as do a lot of other politicians, and even Elite Traders.

 

[Neenisti]

Quote from olias:

This is the conclusion that I have come too also.

To state it another way, 'speculators' can, and do 'get it wrong'. There will be times that they overvalue a commodity, but eventually prices come back in line. And there will also be times that they undervalue a commodity and that's when the consumer benefits from speculation. All in all, the markets and the ability for speculation, means that the prices we all pay at the store and at the pump are much more consistent, and overall, cheaper than we would pay if left up to the simple forces of supply and demand. This is the function of commodity markets.

I love Obama, but he's got this one wrong, as do a lot of other politicians, and even Elite Traders.

Agreed.

It absolutely amazes me that some the individuals in this forum, out of one side of their mouths, say that speculators are idiots and can't consistently make money day trading, they all loose money and are all delusional. Then out of the other side of their mouths they say that speculators are the main cause of the oil price going up. They are clueless on how the economy works AND clueless on how to succeed day trading.

 

[murray t turtle]

Quote from Fireplace:

He didn't say that, he said specs can dictate 24 hrs or 48hrs but by and large dont hold open interest so they can't really affect the price long term

===========
Must be pretty close to right;
PT Jones said he can go into anymarket for 3 days & create the illlusion of a bull market .

Mainly get the federal gov out of the way;
l & more private sector low gas milage autos would help.

And like the king of Arabia said'' cut the gas tax''....................................................................................................

 

[Neenisti]

Build the infrastructure for natural gas fueling.
Convert gas & diesel engines to natural gas.
Diesel and heating oil account for 25% of our oil consumption.
10 years and we could go a long way to cutting our dependency to Crude off at the knees.
15 years we would be producing more Crude than we would consume.
The longest journey begins with the first step and the oil industry has no feet.

 

[Ghost of Cutten]

What makes prices go down in the long-term? Increased supply and lower demand. What makes supply increase and demand decrease? Higher prices.

Therefore, if you want oil prices to be low in the long-term, you should support price increases. If you support low prices, you will end up with high prices.

 

[murray t turtle]

Quote from Ghost of Cutten:

What makes prices go down in the long-term? Increased supply and lower demand. What makes supply increase and demand decrease? Higher prices.

=================True;
interesting CFTC case, filed tues, against Nic Wildgoose/Arcadia Petroleum , one of the biggest cases in energy markets.{WSJ 5-25-2011}