what is stopping the economic recovery? big oil

[luckyleftyme2]

Have you noticed that every time we start to see a little improvement the price of oil per barrel takes a dramatic leap!
I mean if a common man like me can see it what are all the republican elected officials blind?
I think when the people wake up their will be a back lash like this country has never seen!

[ProdigalJunkMail]

1. pay attention to the value of a dollar

and then talk about big oil...much of the run up in prices can be attributed to a weak dollar...

sP

[Subdivisions]

24. Oil prices are rising while the dollar is also rising -->

http://quotes.ino.com/chart/?s=NYBOT_DX&v=d3

[FreakinDJ]

2. Wall St - is manipulating the price of oil

[luckyleftyme2]

4. is that what mitch told ya

that is about as void an argument as you can have ! oil prices went wild
when ever the right -who is dependent on big oil to get re-elcted hopped on the band wagon!
and they have got away with it since Nixon's time!
wall street moves with big money-besides insurance companies who else has made huge profits in the last 10 years?
I rest my case!

[FreakinDJ]

12. Been here at DU long ? - Even 60 minutes named Merrill Lynch

as the main culprit for the Crude Oil Bubble in 2008

What caused the Oil Bubble?

F. William Engdahl, economist and author, in Global Research on May 2, 2008 put the blame squarely on oil speculation. In an article entitled: “Perhaps 60% of Today’s Oil Price is pure speculation,” he noted:

The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. How?

First, the role of the international oil exchanges in London and New York is crucial to the game. Nymex in New York and the ICE Futures in London today control global benchmark oil prices which in turn set most of the freely traded oil cargo . They do so via oil futures contracts on two grades of crude oil—West Texas Intermediate and North Sea Brent.

All this is well and official. But how today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks such as Goldman Sachs or Morgan Stanley have any idea who is buying and who selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil.”

http://www.newenglishreview.org/custpage.cfm/frm/20911/sec_id/20911

[Subdivisions]

27. If the price of oil is not determined by the fundamentals, then how does

60 Minutes explain the decline in oil production?

[Subdivisions]

26. Oil is a commodity. When supply is challenged by demand, the price

of commodities rises. It's fundamental to commodities trading. If there was less wheat this year than last year, the price is going to go up. Same with oil.

[DJ13]

3. Dont worry, Obama is on it

Obama unveils clampdown on oil speculators

WASHINGTON (AFP) — White House hopeful Barack Obama attacked energy speculators Sunday, outlining new regulatory proposals that his campaign said would slash record-high oil prices and help hard-pressed consumers.

The Democrat attacked the so-called Enron loophole, a 2000 deregulation of oversight by the Commodity Futures Trading Commission that critics say opened the way to a speculative free-for-all in the oil markets.

"For the past years, our energy policy in this country has been simply to let the special interests have their way -- opening up loopholes for the oil companies and speculators so that they could reap record profits while the rest of us pay four dollars a gallon," Obama said in a statement.

"My plan fully closes the Enron loophole and restores common-sense regulation as part of my broader plan to ease the burden for struggling families today while investing in a better future," the Illinois senator said.

http://afp.google.com/article/ALeqM5jNJjgKkHGZkk3FAyRTqcgpJx_kdw


Oh yeah, the date on that article was ...... Jun 22, 2008

Im sure its a priority.......... eventually.

[luckyleftyme2]

6. your absolutely right

and the prices dropped from $4.20 in maine to $1.97 -but they are up to
$2.71 now and who just elected 3 repukes!
talk is cheap -an you got plenty!
now lets see your facts!

[HughMoran]

5. & I thought it was just "pick a boogeyman" stopping the recovery

lol

[AllentownJake]

7. Supply and Demand

I think with peak oil, the price is probably right.

That being said, the bank balance sheets are deadlier than the oil cartels.

[luckyleftyme2]

8. that is far from fact

if their is a demand in supply it is because the oil cartels are blocking alternative energy every chance they can!
the fact is we used less heating oil this year world wide! the sale of gasoline is running below 2006 figure!
more and more houses are heating with alternative energy sources!
the demand is actually down -the prices are being raised strictly as a profit move!

[AllentownJake]

10. If there is an alternative supply of energy

it will hit the market. From my observation, gas mileage has improved in cars, car manufacturers are investing heavier in electric cars and efficiency and Nuclear Power plants are being discussed to be built.

Oil is a finite resource, and the big oil companies control less of it than a country like Saudi Arabia or Venezuala.

They are powerful assholes, they aren't that powerful.

[Subdivisions]

32. Oil companies control just 5% of all oil reserves. All the rest is owned/controlled by

oil-producing nations.

[Subdivisions]

31. Wrong again. Please demonstrate how the current price of oil is

attributable to speculation. Also, please explain the situation with current oil production.

[Statistical]

9. Weak Dollar = higher oil prices (and everything else)

there are consequences to spending money that is not ours.

There is no free lunch.

[AllentownJake]

11. Yep

That is a big part of it too.

No free lunches.

[BeFree]

14. Oil is free

What we pay for are pumps, refineries, and delivery.

What we pay has gone up from $1 to $4 and the real costs to get it to us have gone from 10c to 20c. We are getting raped. Please, stop defending the rapists.

[Statistical]

15. oil is free? have you lost your mind?

So exploration is done by magic?
The wells are drilled by slave labor?
The oil teleports itself out of the ground?

"Oil is free" is about the stupidest thing I heave heard on DU today.

[BeFree]

17. Yeah, its free

Been sitting there for millions of years. Some of it does bubble up from the ground.

[Statistical]

18. You have lost your mind. Were done.

If its free just scoop some up out of your backyard and turn it into gasoline in your sink.

Why even pay a $1.00 when it is free.

[BeFree]

19. Good

...if you are so blind that you can't see that oil is free for the taking, then what is the use of even trying to reason with you?

Air is free. Water is free, Dirt is free. Oil is free. The earth is free. The things we absolutely can't live without are pretty much free.

Geez, some people are whacked up, statistically speaking.

[Subdivisions]

29. AJ, Bucky has been climbing for over 3 months -->

http://quotes.ino.com/chart/?s=NYBOT_DX&v=d3

[Subdivisions]

28. The Dollar has been rising though -->

http://quotes.ino.com/chart/?s=NYBOT_DX&v=d3

[depakid]

13. That'll be the refrain...

Too painful and difficult to deal with the prospects of geophysical limits.

[unblock]

16. big oil, big banks, big pharma, big insurance, big big. they're in a position to TAKE all we MAKE

the simple fact of level of market power in many essential industries is that if there's money to be had, someone will take it.

the main thing keeping oil from being even more profitable than it already is is that we aren't driving enough for them, because we're unemployed or scrimping to save. if we had more money, they'd be happy to jack up oil prices to take it. similarly toward manufacturers, if they had more profit, oil companies would be happy to charge more for their production and take it.

if patients had more money, the health care/insurance complex would be happy to take more of it.

if savers had more money, the banks would be happy to take more of it.


the fact of the matter is that there's enough market power in many sectors that if a pocket of wealth is identified, someone is in a position to milk it for all it's worth and leave it barren.

so how on earth can we get ahead? only be breaking up this gargantuan monopolies & trusts and bringing back genuine anti-trust, anti-monopoly, anti-monopsony protections to level out the playing field.

[unkachuck]

20. "...when the people wake up..."

....that's the rub....most Americans are comatose....

[TwixVoy]

21. Wrong. Unrec.

[troubledamerican]

22. Toxic securities, Credit Default Swaps, Derivatives, etc.

[Subdivisions]

25. Agreed. Un-recced also. n/t

[Hannah Bell]

30. your unrec cancelled.

[Subdivisions]

23. Have you noticed that oil production is in decline? n/t

[Statistical]

33. Nah peak oil is a myth.

We can all drive Hummers and demand $1 a gallon oil.
It is our RIGHT as Americans don't you know.
/sarcasm

The reality of permanent higher oil prices is scary to some people and they will convince themselves of all kinds of schemes (even that oil is free and production only costs $0.20) rather than accept the cold simply reality. Oil production is peaking, demand will outstrip supply and oil prices will march ever higher. Even the DOE (who is often Pollyanna-ish) is projecting $300 per barrel oil by 2040.

[Subdivisions]

34. I issued several challenges in this thread. NOT A SINGLE RESPONSE

by those blaming speculation (which DOES EXIST because oil is a COMMODITY!) as the primary driver of oil prices. I have challenged you to look at the other factor that is affecting oil prices and that factor is production - or supply/demand fundamentals.

This happens EVERY SINGLE TIME I bring up the ability of oil producers to supply enough oil to the market. Everyone wants to jump on the speculation bandwagon while ignoring commodity fundamentals. Why is that? Is it because you can't use oil production numbers to prove that speculation is the primary driver of prices? C'mon!