US Rep Says Probe Uncovers Oil Market Manipulation

[RhinoGG]

Quote from IndexSwing:

The higher that oil prices go the sooner we will get serious about alternative sources of energy. It is both necessary and inevitable that oil prices have risen and will continue to rise.

I agree. Innovation stems from struggle.

 

[Landis82]

Quote from IndexSwing:

"The California electricity crisis (also known as the Western Energy Crisis) of 2000 and 2001 resulted from a physcial imbalance between supply and demand arising from years of poor planning and negligence by California energy officials. Some allege the gaming of a partially deregulated California energy system by energy companies such as Enron and Reliant Energy was the sole cause, however this was proven incorrect by the FERC. The energy crisis was characterized by a combination of extremely high prices and rolling blackouts. Price instability and spikes lasted from May 2000 to September 2001. Due to price controls, utility companies were paying more for electricity than they were allowed to charge customers, forcing the bankruptcy of Pacific Gas and Electric and the public bail out of Southern California Edison. This led to a shortage in energy and therefore, blackouts. Rolling blackouts began in June 2000 and recurred several times in the following 12 months."

-Wikipedia: California Electricity Crisis

If you really believe the text that you copied out of Wikipedia, I've got a bridge in an Arizona desert that I'd love to sell you . . . Do you do any of your own thinking?

The only explanation given from Wikipedia that has any relevance whatsoever to my question is:

"a physcial imbalance between supply and demand arising from years of poor planning and negligence by California energy officials."

Everything else is simply a regurgitation of what the end result was.

Tell me, do you really believe that Enron didn't "game" the system and take advantage of the California ISO?

That Enron ( through its Portland General Electric subsidiary ) and traders such as John Forney didn't submit "fake" bids to the ISO through areas of power transmission that were not capable of handling such power demand?

Ever hear of the Death Star trading strategy implelmented by Forney?

If California politicians and energy officials are at fault for what happened, then why had these power transmission shortages never occured before the days of Enron, nor after the days of Enron?

 

[canuckrookie]

Quote from stock777:

Admittedly , the vulgarians driving those vile beasts of the road, the SUV, are as much to blame as the profiteers.

Gas guzzling wastes of tin.

In some way yes....but so is washington for allowing that stupidity. Detroit had the opportunity to provide ev's to the public years ago but killed their own success story because the bastards from the big oil industry wanted to make billions in profits and create a situation like we have this very day. They will suck the life blood out of the American economy and people, and when congress comes after them the damage will have been done. Big Oil wins, American citizens get the shaft stick. Detroit just look like a bunch of morons.

 

[gnome]

Quote from newbunch:

You are talking about Congress, right? Or are you talking about oil execs?

What? Are you NUTS? Both, of course.

 

[Landis82]

Quote from IndexSwing:

Some allege the gaming of a partially deregulated California energy system by energy companies such as Enron and Reliant Energy was the sole cause, however this was proven incorrect by the FERC.

And who was head of FERC?

FERC's chairman at the time was a Texas Republican appointed by President Bush at the behest of then-Enron Chairman Ken Lay.

His name:

Pat Wood III

And you believe this absurd post from Wikipedia???
Sure you don't want to buy a bridge down in Arizona?

 

[stock777]

Time to raise oil futures margins to 50k / contract.

 

[Cutten]

Yeah, because what US Congressmen say is always right. Lol.

Take a look at the economic qualifications of the average Congressman. Anyone who has even picked up an economics textbook and read it cover to cover is better qualified than most of these guys.

 

[Cutten]

Quote from stock777:

Time to raise oil futures margins to 50k / contract.

Oh noes, now we'll only be able to go 250% long oil, what will we do?

 

[Epiphany]

Quote from Champion:

The California electricity crisis was a local and domestic event.

The oil price is in an international market which will exist even if the domestic oil markets here are closed. The political allegations against the high oil price in Congress are part of the blame culture wherein the politicians do not accept responsibility for anything and assign blame to others. Happens all the time. They blame the opposite party or someone else or something else - all the time, never stops. They know they must keep feeding this blame-someone-else shit to a gullible electorate.

There is always a large measure of stupidity to be seen in those that waste their time sucking on conspiracy theories, manipulation and blaming others. They are willing to believe in any old dogshit, or make it up if necessary, so they can see themselves and others as victims. As to trading, they are not rich, they are not trying to make themselves rich, they yap and whine, they peddle their noise on ET and all they are doing is jacking around. If you look across ET over the time I've been registered almost all of those posting now weren't here a few years ago. All these losers are just passing through.

Market manipulation does not imply conspiracy theories (which is very extreme - since that implies people are ALL acting in explicit coordination with each other).

Market manipulation usually stems from UN-COORDINATED individual behavior. Individuals (big money interests) take up large positions with SOME basis in fundamentals (it is true that BRIC countries are upping their demand in oil) and they take advantage of any positive news story and spin it in their favor and also start spinning 1/2 truths to protect and promote their positions - which attracts more lemmings and the herd just continues to grow.

Then they start to pile more money into oil to defend their positions or to squeeze the shorts. This is called self-interest.

It is interesting to note that PURE market manipulation (defined as price manipulation with NO fundamentals backing it up is very rare - this only occurs in tiny markets such as OTC penny stocks)

 

[Cutten]

Quote from Landis82:

Your point is well taken, but obvious.

The point of significance is whether or not the deregulation back in December 2000 by Phil Gramm of the energy markets which allowed for the emergence of "online" exchanges such as EnronOnline, the ICE, and the DME to trade WEST TEXAS INTERMEDIATE crude oil ( which is delivered in Cushing, Oklahoma ) without CFTC supervision, position limits, transparency, etc.

That's the point.

Bull markets have been occuring since well before the CFTC ever existed, and will keep occuring long after it has gone.