Speculation blamed for oil prices

Speculation blamed for oil prices

There are 17 comments on the The York Daily Record story from May 11, 2011, titled Speculation blamed for oil prices. In it, The York Daily Record reports that:

Seventeen U.S. senators on Wednesday called for a regulatory crackdown on speculative Wall Street trading in oil contracts, insisting that excessive betting in oil markets is driving energy prices far beyond supply-and-demand fundamentals.

Join the discussion below, or Read more at The York Daily Record.

MMMH MMMH MMMH

Bowie, MD

#1 May 12, 2011
We must repeal that most oppressive capitalist law of all, The law of supply and demand. Right Barry???

No more drillin.
jfk

Dover, PA

#2 May 12, 2011
If Bammy had a clue he would demand that they change the rules to limit speculation.

What does he do...forms another commission. He'll appoint a gas czar next.
Luke

Stewartstown, PA

#3 May 12, 2011
The two words are GOUGE and GREED!
American Nationalist

Red Lion, PA

#4 May 12, 2011
Barry needs to drill. Or be replaced in 2012.
Kevin

Manchester, MI

#5 May 12, 2011
The politicians are just making noise, so they sound like they are doing something. They will make a few speeches. They will say we should form task forces or committees. But nothing will change. If an average person sells something they do not own, they go to jail, but the rich do it every day with futures trading.
Common Sense Soldier

York, PA

#6 May 12, 2011
American Nationalist wrote:
Barry needs to drill. Or be replaced in 2012.
Drill or not, he's still getting replaced in 2012.

With the simple stroke of a pen, he could remove oil from the commodities market in the interest of national security. It's called an Executive Order. He won't do that though, because he's already gotten money from big oil.

If our collapsing economy isn't causing insecurity in our nation I don't know what is.
Tony

Mount Laurel, NJ

#7 May 12, 2011
Speculation? You mean people buying tangible goods because they know the dollar is worthless?
David

Washington, DC

#8 May 12, 2011
Gold and silver follow oil too. So, what will happen is that we will continue to devalue the dollar to a point where we will lose the priveledge of being the base currency of the world and at that point, we will decide to go back to the gold standard to regain it. Then the government will try to recover all the gold from US Citizens like it did during the Depression. Buy the precious metals now while you can. You can still use them when you need to flee to another country.

Since: Oct 08

York, PA

#9 May 13, 2011
We don't need more drillin' there's plenty out there. What we need is to require those that speculate on commodities to take possession then they wouldn't be speculating and forcing the price up OR shut down the commodities markets for all items and allow those that mine, drill, harvest, etc to charge what the prices that they want to charge rather than having a bunch of Wall Streeters meddling in the price.
YouHelpFixIt

Scottsdale, AZ

#10 May 13, 2011
Absurdity wrote:
We don't need more drillin' there's plenty out there. What we need is to require those that speculate on commodities to take possession then they wouldn't be speculating and forcing the price up OR shut down the commodities markets for all items and allow those that mine, drill, harvest, etc to charge what the prices that they want to charge rather than having a bunch of Wall Streeters meddling in the price.
Perhaps you do not understand the role speculators have in inflating the price (encouraging lower consumtion and increased production) before an anticipated scarcity and deflating the price (encouraging higher consumtion and lowering production) before an anticipated glut.

Going to a straight auction system has many disadvantages.

Maybe you just need a better understanding of the markets, or meant to blame market manipulation or insider trading (both illegal).
Mort

Mount Laurel, NJ

#11 May 13, 2011
Two words..O and Bama.

Since: Oct 08

Harrisburg, PA

#12 May 19, 2011
YouHelpFixIt wrote:
<quoted text>
Perhaps you do not understand the role speculators have in inflating the price (encouraging lower consumtion and increased production) before an anticipated scarcity and deflating the price (encouraging higher consumtion and lowering production) before an anticipated glut.
Going to a straight auction system has many disadvantages.
Maybe you just need a better understanding of the markets, or meant to blame market manipulation or insider trading (both illegal).
Point taken. I don't want undisclosed contracts. But let's make speculators take possession.
YouHelpFixIt

Scottsdale, AZ

#13 May 19, 2011
Absurdity wrote:
<quoted text>
Point taken. I don't want undisclosed contracts. But let's make speculators take possession.
Thats an auction

Since: Oct 08

Harrisburg, PA

#14 May 19, 2011
YouHelpFixIt wrote:
<quoted text>
Thats an auction
I'm not seeing the downside. I'm seeing the fact that they aren't going to be so quick to buy up contracts and push the price up because hey have no place to store what they've bought.Ultimately leaving only the refiners or true middlemen to purchase what they need.

So what's the downside?
Detective Bendadick

York, PA

#15 May 19, 2011
"Speculation blamed for oil prices"; no #hit Dick Tracy! Then why don't the SUPREME a##holes within the Washington Beltway do something about it. If dumb a##e# like US knew this years ago; prior to the RIP-OFFS, where the hell have THEY been!!! They could give two #hits as their transportation in Washington/to and from home/ and while at home is paid for by we taxpayers, so why should they care???
YouHelpFixIt

Scottsdale, AZ

#16 May 20, 2011
Absurdity wrote:
<quoted text>
I'm not seeing the downside. I'm seeing the fact that they aren't going to be so quick to buy up contracts and push the price up because hey have no place to store what they've bought.Ultimately leaving only the refiners or true middlemen to purchase what they need.
So what's the downside?
Increased volitility, the exact opposite of the intent of limititing speculation.

Smart speculating drives down prices before an anticipated glut reducing or delaying production as well as increasing demand thus reducing the impact of the glut. It also drives up prices before a shortage decreasing the demand and stimulating production thus easing a shortage.

Limiting speculation to the folks who use the product also makes it easier for those buyers to game the system. Same thing with the sellers.

Since: Oct 08

Harrisburg, PA

#17 May 20, 2011
YouHelpFixIt wrote:
<quoted text>
Increased volitility, the exact opposite of the intent of limititing speculation.
Smart speculating drives down prices before an anticipated glut reducing or delaying production as well as increasing demand thus reducing the impact of the glut. It also drives up prices before a shortage decreasing the demand and stimulating production thus easing a shortage.
Limiting speculation to the folks who use the product also makes it easier for those buyers to game the system. Same thing with the sellers.
I'll take that under advisement. I'm not sure that anyone truly knows the definition of "smart" however. In theory it sounds good.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Maria Cantwell Discussions

Title Updated Last By Comments
News Trump's tax reform outline promises fight over ... Apr '17 Solarman 1
News Amanda Knox found guilty of murder - again (Jan '14) Apr '17 Bear 89
News Gorsuch Floor Fight Foreshadows Change in Senate (Mar '17) Apr '17 Baptistism by Proxy 18
News Senate votes to block Obama-era rule on federal... (Mar '17) Mar '17 Pete 3
News Trump gets to replace judge who blocked his tra... (Mar '17) Mar '17 Texxy the Indepen... 4
News Democrat Wastes No Time Announcing for 2017 Was... (Dec '16) Dec '16 tomin cali 1
News What do LGBT rights and a pay raise for U.S. tr... (Nov '16) Nov '16 Frankie Rizzo 2
More from around the web