Musings

[lionkingcmsl]

It is evident that it is "speculators" that are driving up the price of oil. Also the people who make money when the oil companies turn huge profits: i.e. stockholders.

My question is, don't these people live in the real world and have to deal with skyrocketing gasoline, heating oil and other prices?

Evidently not, for they would see what is happening as it would affect their pocketbooks as well. I'm sure even Donald Trump and Bill Gates cringe when they see gas prices, as they want to hold onto their fortunes and not spend it on ever increasing prices.

My thought is that oil, for the time being, should be only sold on the "spot" market and not on the futures market. This would see a drop in oil prices as supply and demand would have the effect they should have on oil prices and not some guy trying to make a profit on what he thinks oil will cost at some time in the future.

Anyone have thoughts on this?

Comments

[electronin.livejournal.com]

Enough, isn't, for the crazy people.

[galish.livejournal.com]

Speculating on food and energy should be illegal.

[goodluckfox.livejournal.com]

It isn't speculators. There is a finite amount of oil that we can pump, an increasing amount of demand for that oil, and the value of the dollar is declining so that it takes more and more dollars to buy the same oil. People think that prices are going up when it's really the dollar going down.

Futures markets keep prices stable.

[mortonfox.livejournal.com]

I'm an oil shareholder. So are many average folk, people with 401Ks, pension funds, retirees, etc. Does that mean we're all not living in the real world? I don't think so. We're very much aware of the situation. That's why we invest to protect ourselves from inflation and to generate a side income.

[torakiyoshi.livejournal.com]

So... why then did a missile fired on an Iranian ship drive the price up this morning in the Middle East?

-=TK