If oil is manipulated like gold

[2hip]

If oil is manipulated like gold, and if the past gives us a hint of what’s to come, then the price of oil will decline during the next five months (conveniently ’til the November GE).

I compared the chart for gold to the chart for oil and noticed striking similarities. For your vierwing enjoyment and commentary:

[JDPriestly]

1. I, too, am expecting that. We have to be walking door to door

talking to our neighbors about how the rich play games with the rest of us, how the hopes and dreams of our children, of middle class and poor children are what the rich are really after. This is about the rich who have the means to manipulate these markets and the rest of us who, frankly, and I do not like to say this, are their victims, often their willing victims. When we vote for the leaders that they pick for us and do not vote for people who will defend and represent our interests, then we are willing victims of this game. It's just like monopoly. Once you get the upper hand in terms of property and money, you just keep getting richer and richer. No matter what cards you draw, you are protected against the set-backs. That's not how most of us live.

[PDJane]

2. Well, yeahhhh...................

I'm just surprised that it's not common knowledge.

[Captain Angry]

3. Neither are manipulated.

Gold gets investment when inflation fears rise. Oil prices rising create inflation fears.

Oil prices rise when demand increases and supply is flat. Supply should be higher but IT is manipulated by the lack of refining capacity. Oil is sitting in tankers waiting to be refined.

[lapfog_1]

6. There is currently an EXCESS of refined product.

due mostly to a rapid decline in US demand (off about 8 percent from this time last year).

Oil dipped last week slightly (on the news of building stocks of refined product) before the $150/barrel report was released which caused a whipsaw effect and oil bounded through the $130/barrel number.

The oil companies are not investing heavily in new refineries (here or elsewhere in the world) because they know that there won't BE more oil pumped from the ground than what we are pumping right now. Not ever. The number of major oil fields in decline around the world is, well, frightening.

[lapfog_1]

4. yes, gold is off from its high earlier this year

by about 10 to 12 percent.

Let's assume that oil futures DO hit the predicted $150/barrel price before the end of this month... a ten percent fall from the high would put it back all the way to $135/barrel.

That's not really very encouraging... $4/gallon at the pump instead of maybe $4.50 or so.

And really, this is more about two fundamentals...

The rapid decline of the dollar and peak oil

Gold is also about two fundamentals...

The rapid decline of the dollar and the housing bubble (coupled with a flat economy).

Speculation is happening (or has happened) in both markets.

Don't expect to see $2.50 or $3.00 gas in your future, even if the oil companies wanted a McCain win in November.

[2hip]

7. I'm guessing $110/barrel by November

No big whoop, I know. And it won't drop the $4+/gallon we're seeing at the pumps now. Friday's market action was an intended "shock" to condition the public to higher gas prices from here on out. The oilmen in the WH are guaranteed continuing riches far beyond their term in office. Way to go, bastards!

[whistle]

5. How could that happen oil is consumed...gold is horded