| View previous topic :: View next topic |
| Author |
Message |
mises
Joined: 05 Nov 2007
Location: retired
|
 Posted: Thu Jun 26, 2008 11:54 am Post subject: Gas could fall to $2 if Congress acts, analysts say |
 |
|
http://www.marketwatch.com
| Quote: |
WASHINGTON (MarketWatch) -- The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.
Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.
Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets.
Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.
"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."
Futures trading in London has not been a major factor in rising oil prices, testified Sir Bob Reid, chairman of the Chairman of London-based ICE Futures Europe. Rising prices are largely a function of fundamental supply and demand, not manipulation or speculation, he said.
"Energy speculation has become a growth industry and it is time for the government to intervene," said Rep. John Dingell, D-Mich., chairman of the full committee. "We need to consider a full range of options to counter this rapacious speculation." It was Dingell's strongest statement yet on the role of speculators. |
|
|
| Back to top |
|
 |
Joo Rip Gwa Rhhee
Joined: 25 May 2003
|
| Posted: Thu Jun 26, 2008 12:33 pm Post subject: |
|
|
| Do it as quick as possible. Only once it happens can we know for sure. |
|
| Back to top |
|
|
mises
Joined: 05 Nov 2007
Location: retired
|
| Posted: Thu Jun 26, 2008 12:47 pm Post subject: |
|
|
Yeah, I tend to agree. I read so many reports about why oil has jumped so much. My personal opinion is that the global pool of money (an excellent phrase I stole from This American Life) has ran from the American housing market and jumped head-first into commodity - specifically energy - markets.
| Quote: |
The oil-rich Gulf Cooperation Council (GCC) states are projected to earn close to $US1.3 trillion ($1.36 trillion) in oil revenue in 2008 and 2009, a Kuwaiti economic report said.
The six-nation alliance - Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Saudi Arabia - earned $US364 billion from oil in 2007, the Al-Shall Economic Consultants said in its weekly report.
The GCC oil revenues are projected to reach $US636 billion in 2008 and $US657 billion in 2009, Al-Shall said.
Oil powerhouse Saudi Arabia's earnings in the two years will be just under $US700 billion. The kingdom posted $US194 billion in oil revenues in 2007.
The six states, which boast just less than half of the world's crude proven reserves, produce around 16 million barrels per day, or just under one-fifth of the world's consumption. |
The largest transfer of wealth in the history of the world is taking place right now. From America (mostly) to fundamentalist islamic states. This must stop. |
|
| Back to top |
|
|
Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
|
| Posted: Thu Jun 26, 2008 1:43 pm Post subject: |
|
|
| Quote: |
| four energy analysts told Congress on Monday |
Is this a consensus view of energy analysts, or just of these 4? I will admit it's rare to get even 4 economists to agree on anything. |
|
| Back to top |
|
|
mises
Joined: 05 Nov 2007
Location: retired
|
| Posted: Thu Jun 26, 2008 1:58 pm Post subject: |
|
|
| There is so much out there about why prices are high. There is very little agreement on much of anything, but even more so with this. |
|
| Back to top |
|
|
Zenas
Joined: 17 May 2008
|
| Posted: Thu Jun 26, 2008 2:31 pm Post subject: |
|
|
"if pigs could fly."
_____________________
Commodity prices have risen due to too many dollars flooding the world.
That is the fact that those who are flooding the world with dollars are trying desperately to keep the rest of the world from realizing.
They have a Plunge Protection Team working full-time now doing just that.
____________________________ |
|
| Back to top |
|
|
Zenas
Joined: 17 May 2008
|
| Posted: Thu Jun 26, 2008 3:55 pm Post subject: |
|
|
Lemming | sheople thinking of course.
Full speed ahead.
__________________________________ |
|
| Back to top |
|
|
doc_ido
Joined: 03 Sep 2007
|
| Posted: Thu Jun 26, 2008 4:13 pm Post subject: |
|
|
| mises wrote: |
| The largest transfer of wealth in the history of the world is taking place right now. From America (mostly) to fundamentalist islamic states. This must stop. |
Better crank up the invasion machine again then, as I don't see any of the Gulf states changing governments by themselves nor the oil reserves leaching into neighbouring countries.
While the Gulf states do hold an important position, don't forget that the USA gets around 80 % of its imported oil from other places (mainly Canada, Mexico, Venezuela and Nigeria). I guess nobody's worried about transferring wealth to those places.
As for the speculation-price-rise argument, that's what free marketeering is about! You can't have it both ways. |
|
| Back to top |
|
|
bacasper
Joined: 26 Mar 2007
|
| Posted: Thu Jun 26, 2008 4:24 pm Post subject: |
|
|
Lowering the price of gas would be the worst thing to do for the environment, and would delay the development of alternative energy sources.
Let's hope it does not happen. |
|
| Back to top |
|
|
Zenas
Joined: 17 May 2008
|
| Posted: Thu Jun 26, 2008 4:29 pm Post subject: |
|
|
Lose your job, lose your house, lose your economy, but save the environment.
_________________________________
| Quote: |
While the Gulf states do hold an important position, don't forget that the USA gets around 80 % of its imported oil from other places (mainly Canada, Mexico, Venezuela and Nigeria). I guess nobody's worried about transferring wealth to those places. |
Most of the price increase is benefiting the middle men, not those places.
_________________________
Last edited by Zenas on Thu Jun 26, 2008 4:31 pm; edited 1 time in total |
|
| Back to top |
|
|
bacasper
Joined: 26 Mar 2007
|
| Posted: Thu Jun 26, 2008 4:30 pm Post subject: |
|
|
| Lose the environment, lose everything. |
|
| Back to top |
|
|
Zenas
Joined: 17 May 2008
|
| Posted: Thu Jun 26, 2008 4:33 pm Post subject: |
|
|
HOUSTON (AP) - Oil giant Exxon Mobil Corp. on Thursday posted the largest annual profit by a U.S. company�$39.5 billion�even as earnings for the last quarter of 2006 declined 4 percent.
The 2006 profit topped Exxon Mobil's own previous record of $36.13 billion set in 2005.
http://www.breitbart.com/article.php?id=D8N0VRD80&show_article=1
___________________________________-
If you don't have a house, a job or an economy, who gives a rat's rectum about the environment?
And we're not going to wreck the environment with lower priced fuel.
_____________________ |
|
| Back to top |
|
|
TexasPete
Joined: 24 May 2006
Location: Koreatown
|
| Posted: Thu Jun 26, 2008 4:39 pm Post subject: |
|
|
| Joo Rip Gwa Rhhee wrote: |
| Do it as quick as possible. Only once it happens can we know for sure. |
What? Didn't we just spend four pages arguing about this very thing and now you're saying do it? |
|
| Back to top |
|
|
Joo Rip Gwa Rhhee
Joined: 25 May 2003
|
| Posted: Thu Jun 26, 2008 4:43 pm Post subject: |
|
|
| TexasPete wrote: |
| Joo Rip Gwa Rhhee wrote: |
| Do it as quick as possible. Only once it happens can we know for sure. |
What? Didn't we just spend four pages arguing about this very thing and now you're saying do it? |
I don't think speculation has the effect that people say , but that doesn't mean that I don't want to see a stop to it as soon as possible.
Tell you what if the US does something about speculation and it doesn't have the desired effect will you rethink some of your other positions on oil? |
|
| Back to top |
|
|
TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
|
| Posted: Thu Jun 26, 2008 4:48 pm Post subject: |
|
|
| Lower prices, and the oil producing countries lower supplies to drive the price back up. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
