Oil: Speculation or Supply and Demand?

[Bullitt]

I first saw and advertisement for this 'movement' in the Journal over the weekend. The Airlines seem to think it's speculators as they fully endorse this website against oil speculation and are major players in the Oil Futures markets so I have to believe they have some credibility. Some decent links to analyst reports but other than that, looks more like another site trying to 'Fight the Power'.
http://www.stopoilspeculationnow.com/


Good site giving 'em the dissenting opinion.
http://capmag.com/article.asp?ID=5224

[luv2read]

I believe the airlines. They ARE major players in the oil futures market, but not as speculators, they take delivery; and the financials have been lobbying HARD to convince Congress it's all supply/demand, despite all the evidence and OPEC's repeated statements to the contrary. OPEC was proven right today. Financials and oils are the biggest speculators.

[Bullitt]

I agree Luv2read. I don't think commodities were intended as investments because they are intended for consumption (for the most part). We talk alot about crooks on this MB and if you look at the ones who say it's supply and demand, they've all got an agenda. It's all about 'beating the market' to these idiots.

I have to err slightly to the side of airlines here. They've been playing this game for years while Hedge Funds and retail investors have just begun to scratch the surface of commodity trading after the implementation of a few ETF's.

That movement needs to do a better job than just taking the word 'speculator' and turning it into a derogatory word you'll hear in the back of the school bus. I hear all this BS about speculators, but never any mention of investors/pension funds that have ETF's such as USO, OIL, GLD, SLV in their portfolio.

[Bullitt]

Good article here that's sure to get the blood pumping. It's just a matter of time before the commodity boom collapses.


Over the course of an average month at the NYMEX, 5 BILLION barrels of oil will be traded, with a fee being collected on every single transaction which is ultimately passed down to US consumers, yet less than 40M barrels will actually be delivered. That is just 8 tenths of 1 percent of actual demand for the product that is being traded - 99.2% of the oil transaction fees being paid by the American people do nothing more than create fees for the traders and record profits and bonuses for the trading firms! http://www.philstockworld.com/2009/11/11/goldmans-global-oil-scam-passes-the-50-madoff-mark/

[Nordic]

From Jimmy Jubak:

"But none of the supply-side problems that led me and others to predict $150-to-$200 oil has gone away. As soon as oil demand rebounds with a global economic recovery, I think we're going to be right back on the road to $150-, $180- or $200-a-barrel oil."

http://articles.moneycentral.msn.com/Investing/JubaksJournal/will-oil-hit-200-dollars-after-all.aspx

[James48843]

$150 a barrel is just around the corner.

Soon as demand picks up- it's up, up, and away.

[Bullitt]

Yes sir, speculators, derivatives and swaps indeed.


Oil prices are fully valued right now, I don’t think the economy really supports $80 oil, it should be much lower than that. Again, it’s speculation that put oil prices up.http://www.stopoilspeculationnow.com/home.aspx


$150 a month, however, I would like to see how much they spend on cable, cell phone bills or bottled water instead to put the brainwaves of America into perspective.

http://www.stopoilspeculationnow.com/PublishingImages/hm_ad_04022010.jpg