India's Solution for High Oil Prices: Ban Speculative Trading

[nutmeg]

The high price of oil is one way to finance the war on Iraq. It is a way to suck dollars from the citizen and cos. without a direct "we need to raise taxes to pay for the war".

 

[onthesidelines]

I have to believe that the Dollar Weakness has a lot to do with this present move upwards in Dollar priced Oil contracts. As the Dollar gets smoked overseas investors are going to look for the cheapest oil?
I think it would be interesting to see the relationship between Oil Prices and the downward move in the Dollar!

 

[[Proximo]]

WTF are you talking about. I believe in justice and fairness, that's it.

I oppose the US invading countries, whenever they feel like propping up their economy.

Quote from Trvlwanderer:

Should be shot and killed? I bet you're a fucking "compassionate" liberal who is politically correct when you want others to be. I bet you oppose war in any form because you praise "peace". Irony.

 

[onthesidelines]

WSJ had a great story on $100 Oil in the back page of section c yesterday it is worth the read.

 

[Avid_Consumer]

Quote from Ivanovich:

Tax the shit out of speculative oil trading. If you don't take delivery of the oil, you get hit with a whallop. India is on the right track in my opinion. That'll help stop this crap.

and throw free markets to the wind? ok ivanovich

 

[Tracy McGreedy]

Wow, what a commie.

Quote from ByLoSellHi:


A subcommittee of the United States House headed by Representative Bart Stupak, Democrat of Michigan, is investigating commodities trading, and one bill before Congress proposes giving Nymex’s regulator, the Commodity Futures Trading Commission, more oversight over Nymex’s rival, the Intercontinental Exchange.

Analysts say the market has gone from a small group of oil users and producers to a full-fledged investment arena in recent years, like stocks or bonds. Prices can move according to intangible factors like fear, just as they do in the equity markets, the analysts say. Investing in oil has also become a hedge against a weak dollar.

“Looking at oil supply and demand doesn’t help me to understand oil prices” any longer, said Roger Diwan, a partner with PFC Energy, a consulting company in Washington. “I need to look at the dollar, at inflation and at credit squeezes.”

India is understandably concerned about high prices. The country imports 70 percent of its crude oil and has few strategic reserves and a deeply divided political landscape.

Buying stakes in overseas oil properties is proving much cheaper for India than purchasing crude on the open market. In some areas where India has purchased stakes in oil fields, it is pulling light crude oil — the kind that sets the benchmark oil price — out of the ground for less than $40 a barrel, Mr. Srinivasan said.

But Nymex executives dismiss Mr. Srinivasan’s suggestion of halting oil trading. “Nymex is just a central point where buyers and sellers can come to exchange their wares,” Richard Schaeffer, the chairman of Nymex, said in a telephone interview. “We don’t make the prices. We make the prices known.”

Without Nymex, Mr. Schaeffer said, users could “only imagine a group of countries getting together and saying ‘What do we charge today?’”

Despite the risks of ever-rising oil prices, analysts say that Mr. Srinivasan’s idea is unlikely to be adopted; the oil market has become too big and too powerful. “There is no way to put the genie back into the bottle,” Mr. Diwan said.

 

[gnome]

Quote from nutmeg:

The high price of oil is one way to finance the war on Iraq. It is a way to suck dollars from the citizen and cos. without a direct "we need to raise taxes to pay for the war".

OK, you need to explain. If the price of oil soars, and we oil-dependent Americans buy from and pay OPEC for 2/3 of our oil need, how does that "finance the war"??