Originally Posted By DyGDisney Yes, let's kill people to bring down the price of gas!!!! Great idea......
Originally Posted By oc_dean I don't think mrkthompson meant the kind of war when we think of Iraq, or WWI, or WWII.
Originally Posted By oc_dean There's just no reasonable reason for it to jump so high like this. There is DEFINITELY manipulation going on here .. and we are all hurting as a result of those with dollar signs in their heads. And while that may sound a bit too simplistic........ But while China is buying more oil .. and all the other world financial reasons for it all ...... How is it possible to peek this much within such a short amount of time?! How is it reasonably possible to surge this much?
Originally Posted By oc_dean Sorry for the redundancies. But there's of course manipulation going on .. and some are getting even richer.
Originally Posted By mrkthompsn <I don't think mrkthompson meant the kind of war when we think of Iraq, or WWI, or WWII.> Actually, from WWII, The Empire of Japan did indeed initiate war to protect its oil interests. For example, when they bombed Pearl Harbor, they destroyed nearly everything - except the oil reserves. Each tank was left fully intact, ready to be acquired.
Originally Posted By fkurucz <<There's just no reasonable reason for it to jump so high like this.>> How about a dollar that has gone off the cliff? I guess all those years of trade deficits are finally catching up to us. Just wait for China to revalue its currency. If you think oil is expensive now.....
Originally Posted By gottaluvdavillains Okay so school has been out for a week - we had dentist appts on last friday - then ds17 go braces - so ortho on monday - that has been only trip out - kids are already bugging me about day-vacations and such... Geez and we just got PS3 last week, we wii, have a pool, and netflix --- summer is going to be LONG!!
Originally Posted By EighthDwarf War would only help (in the long run, not the short run) if it were a supply issue. It is not. The speculation in the futures market is keeping the price artificially inflated. A lot of that is due to fear of near-term supply problems such as war with Iran, refineries going offline, etc. But there is a significant amount of market manipulation going on as well. I won't name names but do some research as to who got hurt the most by the credit crunch and then look what they are saying about the price of oil. In trying to recover their losses they are betting on the futures market for a quick buck. An investigation was just launched by the futures market so watch for contracts to get closed out and prices to drop. And a mountain of regulations in all aspects of the financial services industry to be coming down the pike.
Originally Posted By SuperDry The nice thing about speculative bubbles is that they always burst eventually, as they're based on the "greater fool" theory. Once this happens to oil, prices will come down to their natural supply/demand level. But, I have no idea if this means it will be $5/barrel cheaper or $50/barrel cheaper.
Originally Posted By Mrs ElderP ^^ That's the huge question isn't? While I do think that oil will eventually go down *some* and will continue to go up and down seasonally, I don't see anything that stops a long term trend of UP over the next decade.
Originally Posted By EighthDwarf Oil, like every investment, will always be in an "up" trend in the long term. If you price out the normal growth rate of the price of oil (about 8% a year) the price per barrel should be around $70 right now. With the strengthening of the dollar in the near future and the pressure against speculation, watch for oil to fall dramatically at some point. The question in my mind now is what will be the repurcussions?? I know there are financial firms betting on the continued bull market in oil futures. When that collapses we will all feel it in one way or another.
Originally Posted By queenbee Would these be the same financial firms that are able to borrow money from the Fed's newly created lending window? Aren't they swapping their lousy CDO's for Treasury notes? Makes me wonder if the taxpayers are provding the liquidity to manipulate the markets.
