M
Mountain
Goldman Sachs put out an announcement going back a few weeks ago saying oil was gonna pull back.
Gas is gonna go through the roof.....
- Thread starter BrainSellz
- Start date
Chronic Don
Member
industrial cannot afford a high price for energy if wanting to sell competitively with world/chinese products. if industry quits using energy demand falls, prices fall, also means less wages being paid, less taxes paid, less money spent. economic slowdown ....
good call, they were right
speculation has been driving this for a while, oil is coming out the ears of storage depots
but that's how it works, get some spot traders cleaned out of their money, others get a little less brave in driving up the price
Getting close to $5/gallon her in the NE now. I think it's funny that people think if gas goes up to $6/$7 per gallon, drastic changes will happen...look at the price of cigarettes over the years...some more than $10/pack now, but I honestly doubt many, if any people, have actually quit b/c of the price itself. Thank God that I quit smoking when cigs up to $2.50/pack and I'm glad I only have to fill up a 4 cylinder car these days. Shit is just getting ridiculous in the USA! Everything going up except the salaries. Thank god for IC and that we no longer have to pay top dollar for our headies! Really need the herb in stressful times like these.
Commodities are getting destroyed right now. Oil is down to below $98. Massive sell off under way.
Bernanke's bubble is bursting.
Bernanke's bubble is bursting.
Chronic Don
Member
"that we no longer have to pay top dollar for our headies! Really need the herb in stressful times like these. "
a bag of weed will get you through times of no money but a bag of money will not get you through times of no weed
a bag of weed will get you through times of no money but a bag of money will not get you through times of no weed
That's not really a fair comparrison though, there is no physical addiction causing people to buy gas. If gas goes up to $6 - $7 there will be big changes. Pretty much all the inflation we're seeing today is driven by energy costs. People are barely making ends meet at $4 per gallon. That's why the last time gas prices went up drastically they stopped at $4. People couldn't afford it and so they cut back, truckers couldn't afford to work and so they threatened to strike. Supply and demand mean jack if not enough people can afford the product.
BrwnStickyThumb
Member
Gas is comparatively arround 6$ a gallon where I live and it's one of the cheapest parts in eastern europe because of different taxing and such, more than 1€ a liter and theres about 20% unemployment rate, minimum wage is around 600€ a month for 40h a week...
It's been a lot of years since we left behind the 0'70€/l mark, the more you have...
It's been a lot of years since we left behind the 0'70€/l mark, the more you have...
the saddest thing about this mess is that oil isn't even a finite resource... they just made us believe it was, so they could sell it for much more money. (and hold the world hostage with it)
http://www.youtube.com/watch?v=vdSjyvIHVLw
http://www.youtube.com/watch?v=vdSjyvIHVLw
Nevermind. Oil is rallying again. Just a lot of panic selling that dropped the price so much yesterday. The Herd seems to be on edge. I wonder why? 
If anyone had any lingering doubts that the price of oil is driven by supply and demand they should have been totally wiped out by yesterday's market action.
The price of everything is driven by the FED and their army of speculators.
If anyone had any lingering doubts that the price of oil is driven by supply and demand they should have been totally wiped out by yesterday's market action.
The price of everything is driven by the FED and their army of speculators.
Chronic Don
Member
so is it a legit price or is it a price thats been set/fixed? and isnt it illegal for comapnies to get together and decide what the price will be?
didnt somehting similar happen to standard oil? got so big it set the price so they cut it apart and sold it off back in the old days 20's-30's or so?
didnt somehting similar happen to standard oil? got so big it set the price so they cut it apart and sold it off back in the old days 20's-30's or so?
I take that back oil got hammered again today. It tried to rally.
It's "legit" as everything else is. Everything is completely distorted because the FED trying to run the market.
Really oil companies do not want to see $150/barrel oil. We aren't retarded. It's well known in this industry that the oil prices are always peaking right before everything else in the economy shits the bed. High oil prices will cause a recession which in turn ruins our business too.
Ideally we'd like to see stable, but high oil prices. $80 or so would be nice. But because of the Federal Reserve and Wall Street (one and the same entity) we have the Keynesian boom bust cycle. The price gets pushed up to high and we all go down together.
Anyone who says that it's the big bad oil companies who are driving the prices up frankly doesn't understand the dynamics at play. Oil companies are just a small piece of the Wall Street Federal Reserve dynamic.
It's "legit" as everything else is. Everything is completely distorted because the FED trying to run the market.
Really oil companies do not want to see $150/barrel oil. We aren't retarded. It's well known in this industry that the oil prices are always peaking right before everything else in the economy shits the bed. High oil prices will cause a recession which in turn ruins our business too.
Ideally we'd like to see stable, but high oil prices. $80 or so would be nice. But because of the Federal Reserve and Wall Street (one and the same entity) we have the Keynesian boom bust cycle. The price gets pushed up to high and we all go down together.
Anyone who says that it's the big bad oil companies who are driving the prices up frankly doesn't understand the dynamics at play. Oil companies are just a small piece of the Wall Street Federal Reserve dynamic.
In 12 years, big oil has gone from a profitable industry to the most profitable industry worldwide.
Speculation is just added fuel to the fire.
Oil has several oddities when it comes to pricing. Retail sales don't involve the typical wholesale to retail markup. The formula is complicated when the previous purchase is calculated into the subsequent supply price. Ultimately, we get hammered on the upswing and the wanes trickle back down, usually above the previous ceiling.
Big oil companies have to report their cost figures to the feds. According to the last article I read, looks like $30/bbl on average.
It all started with the secret Dick energy meetings and "peak oil". That was just another market rumor that spiked retail when cost didn't spike accordingly.
Nobody's singling out people to blame, certainly not industry employees. But big oil execs have the same disease that big business in general has had the last three decades. They were just too regulated prior to 2000 to do much about it.
I'd like to know who some of these Wall Street speculators are. I'd like to follow the money trail and see if some of it gets back to oil execs. Wouldn't be surprising in the business world these days.
Speculation is just added fuel to the fire.
Oil has several oddities when it comes to pricing. Retail sales don't involve the typical wholesale to retail markup. The formula is complicated when the previous purchase is calculated into the subsequent supply price. Ultimately, we get hammered on the upswing and the wanes trickle back down, usually above the previous ceiling.
Big oil companies have to report their cost figures to the feds. According to the last article I read, looks like $30/bbl on average.
It all started with the secret Dick energy meetings and "peak oil". That was just another market rumor that spiked retail when cost didn't spike accordingly.
Nobody's singling out people to blame, certainly not industry employees. But big oil execs have the same disease that big business in general has had the last three decades. They were just too regulated prior to 2000 to do much about it.
I'd like to know who some of these Wall Street speculators are. I'd like to follow the money trail and see if some of it gets back to oil execs. Wouldn't be surprising in the business world these days.
I hear ya.
You really outta to check out the book "The Big Rich". It's a fascinating look at the rise and fall of the oil families. It goes into detail about how they were in bed with LBJ and totally corrupt. Fascism through and through with business running government. I'd think you'd really like it.
The oil execs have certainly reaped in huge rewards from speculation. The entire industry is awash in cash right now. But as powerful as they are they still don't hold a candle to the Federal Reserve primary dealers, the officers of high finance such as Goldman Sachs, JPMoron, BofA. They are your speculators. They are the first one to get their hands on the newly printed free money from the FED which then finds its away into equities and commodities, including oil. They are driving the ponzi bus. I would put the oil execs sitting in the front seat next to them, but still subordinate.
The bankers and the oil execs all eat from the same hand, but the banks have been poisoning the well long before the oil families from the south showed up on the scene or the first drop of oil was discovered. Oil money is considered new money. The oligarchs from Connecticut still thumb their noses at the southern oil overlords. The Bushes certainly did. They were initially bankers from Connecticut. The oil thing was something they gave to their kids to play with.
You really outta to check out the book "The Big Rich". It's a fascinating look at the rise and fall of the oil families. It goes into detail about how they were in bed with LBJ and totally corrupt. Fascism through and through with business running government. I'd think you'd really like it.
The oil execs have certainly reaped in huge rewards from speculation. The entire industry is awash in cash right now. But as powerful as they are they still don't hold a candle to the Federal Reserve primary dealers, the officers of high finance such as Goldman Sachs, JPMoron, BofA. They are your speculators. They are the first one to get their hands on the newly printed free money from the FED which then finds its away into equities and commodities, including oil. They are driving the ponzi bus. I would put the oil execs sitting in the front seat next to them, but still subordinate.
The bankers and the oil execs all eat from the same hand, but the banks have been poisoning the well long before the oil families from the south showed up on the scene or the first drop of oil was discovered. Oil money is considered new money. The oligarchs from Connecticut still thumb their noses at the southern oil overlords. The Bushes certainly did. They were initially bankers from Connecticut. The oil thing was something they gave to their kids to play with.
Oil back up 6% today. Almost back up to $103. It's retraced almost half of last weeks slaughter sell off. $104.06 marks halfway. Wow. Just wow. Huge market moves going on.
The Bernanke bubble will not be denied it seems. I guess that mini-crash was the big boys taking profits, slaughtering the sheep, and accumulating positions for another run up?
The Bernanke bubble will not be denied it seems. I guess that mini-crash was the big boys taking profits, slaughtering the sheep, and accumulating positions for another run up?
If you have some oil stocks I would say now may be a good time to go short? I think there is another fleecing coming.
What the CME just did to silver it is beginning to do to crude. Margin calls coming. This smells of attempted price control. That always works out great. Not.
CME hikes oil, gasoline margin requirements Market Watch
I think there is another fleecing coming. What the CME just did to silver it is beginning to do to crude. Margin calls coming. This smells of attempted price control. That always works out great. Not.
CME hikes oil, gasoline margin requirements Market Watch
M
Mountain
Interesting about them raising the margins here also. I can see how it is advantageous to remove speculation but also how they can use such changes to manipulate things.
Honestly if anything with oil stocks I'd be looking to pick some up as I've seen a few oversold already. Demand for oil is only going up. Maybe they're raising margins to crush valuations of some companies so the Chinese can come in and buy some things cheap...lol.
Honestly if anything with oil stocks I'd be looking to pick some up as I've seen a few oversold already. Demand for oil is only going up. Maybe they're raising margins to crush valuations of some companies so the Chinese can come in and buy some things cheap...lol.
M
Mountain
We gotta make up to them for all the Quantitative Easing and the US debt they've been holding and the devaluation thereof. Regardless of what some think China has some leverage IMO.lol
I agree. I think China has quite a bit of leverage and are probably quite crafty in how they employ it. They certainly aren't the helpless country that is portrayed over here.
