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Thread: Oil prices

  1. #1
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    Oil prices

    HURRICANE KATRINA SPELLS PROFIT FOR OIL GOONS

    By JOHN CRUDELE



    August 30, 2005 -- A, B, C, D, E, F, G, H, I, J and then finally K.

    It took oil speculators nearly half the alphabet before they got what they desperately needed a hurricane named Katrina with enough punch to legitimately threaten U.S. oil production in the Gulf of Mexico.

    And with that the oil goons did what they do best: They jacked up the price of crude well beyond the irrational level.

    The price of oil rose more than $4 a barrel at one point yesterday in the futures market to $70.80, which was easily a record, and the speculators have made their money and inflicted their damage on the world economy.

    Well done, guys! Sleep well tonight.

    You couldn't tell it by the screwballs who have hijacked the crude market this year, but there is plenty of oil in the world.

    According to the federal government's Energy Information Administration, there are 322.9 million barrels of crude currently out of the ground in the U.S. and waiting to be used. That's up sharply from the 285.3 million during the same week last year.

    And there's plenty of gasoline as well 194.9 million barrels, to be exact. That is down from the 209.6 million barrels last year. But the drawdown in gas has come mostly in the past few weeks and probably has more to do with a changeover to a heavier winter fuel blend.

    As the U.S. is past its heralded "peak driving season," gasoline inventories are likely to rise in the next couple of weeks.

    The speculators, of course, have answers for everything.

    When the supply-side argument fails, the speculators will use their backup: that oil demand is booming, especially in China.

    And all the inventory numbers have been rising despite the increase in the government's Strategic Petroleum Reserves to its maximum capacity of 700 million barrels of crude, from 667 million this time last year.

    Sen. Chuck Schumer yesterday called on the government to put some of that SPR oil on the market to bring down prices.

    I have another idea. The New York senator should ask his colleagues to investigate whether Wall Street firms like Goldman Sachs which has been predicting $105-a-barrel oil for some time and salivating over the idea have been profiteering on oil speculation.

    Nobody wants to deprive the speculators of their blood money. But it's just too easy to move the price of oil higher if someone is inclined to do so.

    There is no "spot" price for oil, like other commodities. So you can't determine what someone would pay if they wanted a barrel of oil delivered to their doorstep today.

    Oil trades through futures contracts, which represent 1,000 barrels of crude to be delivered sometime in the future. Each of those contracts gives a speculator control of more than $68,500 worth of oil (at $68.50 a barrel). But a speculator only has to put up the $4,325 margin price for each contract.

    Right now, there are 244,405 contracts outstanding, which represents 244.4 million barrels of future oil.

    That's plenty reason for speculators to want the price to keep climbing and more than enough reasons for Washington to stop them from doing it.
    -----------------------------------------------------------

    Thoughts? This is what I've been saying based on my limited knowledge of the stock market.

  2. #2
    "the OIL GOONS" where did you get this article?

    goldman sachs are the smartest firm on wall street - those people live eat breathe and crap money - accuse them of profiteering but don't accuse them of being stupid.

    Wall Street didn't create a hurricane that affected the nation's largest fossil fuel port of call.

    Wall Street didn't create global demand for oil from places like India and China.

    Wall Street didn't create terrorism and instability in the ME.

    cmon anyone who owns a 401k is invested in oil. Some on this board alot more than others. It's way too convenient to blame investors when everyone profits off of the status quo.

    I work in logisitics and New Orleans is literally the biggest port of vessels, pipeline in that region of the country. Maybe the entire country. If they get wiped out Houston would boom, they aren't that far behind, but are also prone to natural disasters.

    Face it Wall Street can do alot of things it can even work it's own magic sometimes (currency exchange especially this is true), but Wall Street cannot manufacture a category 4 hurricane hitting the Mississippi delta.

  3. #3
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    NYPost Business section in today's paper

    Its all futures traders; not investors.

  4. #4
    [QUOTE=quantum]NYPost Business section in today's paper

    Its all futures traders; not investors.[/QUOTE]

    Good point and very true. The problem is suppose to be refineries.

  5. #5
    [img]http://www.okdhm.com/uploaded/funnyimages/Gas.jpg[/img]

  6. #6
    [QUOTE=BrooklynBound][img]http://www.okdhm.com/uploaded/funnyimages/Gas.jpg[/img][/QUOTE]


    Nice. Sad....but still pretty funny. :D

    All I know is this.....it used to take ~$24.00 to fill the tank of my 1998 Taurus. This was as little as 6 months ago.

    Yesterday it took almost $38.00.

    I fill three times per two-week pay period. So for me, it's an extra $42.00 or so every paychek to pay the difference between what it cost 6 months ago, and today ($72 per week vs. $111 per week now).

    Does it kill me? Nope. But I can see where such costs do hurt alot of other folks.

    To be honest, I really don't have any idea what the solution is, barring additional releases from our strategic reserves OR an Oil Grab from Iraq to "repay" us for the $2 Billion we've spent on them to-date.

  7. #7
    A fifty cent spike. Come on.

  8. #8
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    i just ride my bike around, easy for me to say though. all i do is ride around my local area without any heavy stuff to lug around. but hell if you absolutely dont have to drive around dont. forget youre weekend getaway and let the oil tycoons feel it in the only place that counts to them.... their walet

  9. #9
    [QUOTE=ChipShot]i just ride my bike around, easy for me to say though. all i do is ride around my local area without any heavy stuff to lug around. but hell if you absolutely dont have to drive around dont. forget youre weekend getaway and let the oil tycoons feel it in the only place that counts to them.... their walet[/QUOTE]

    Don't kid yourself into thinking you can make a difference in their paychecks. Oil has us by the balls.

  10. #10
    [QUOTE=OrangeJet]Don't kid yourself into thinking you can make a difference in their paychecks. Oil has us by the balls.[/QUOTE]

    And now they are rubbing our faces in it.

  11. #11
    Try over here in Scotland 95p a litre of Diesel takes me approx 50 ($82) to fill my 45litre tank and i'm doing that twice a week to travel to my work.... :mad:

  12. #12
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    Gas and beer...

    I was just wondering if anyone else experienced the huge discount on Budweiser beer in their area?

    I went to top off the tanks for my lawn equipment (Unleaded $2.91) so I can mow my 17 lawns this weekend and the Quickie Mart had Bud Longneck 20pks for $4.00.

    The difference in the 20pk is almost exactly the difference in what I paid to top off the car the day before. Coincidence?

    Anyway, I picked up a couple and told my neighbors, turns out Bud products were on sale all over town 20pk Longnecks for $4.00. A neighbor bought 20 cases. :eek:

  13. #13
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    i seen this gas stadium in manhattan yesterday posting prices at 3.99 a gallon, sad thing was... there were taxis lined up for nearly a block ready to feed the pigs (oil tycoons).

    kinda hard to associate the jets with one of those bastard rich oil tycoons leon hess, at least the franchise belongs woody now.

  14. #14
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    Cmon....the oil companies are setting record profits while we get screwed, wake up. Shortage my ***. Every summer prices go up as people travel more. Coincidence? Every little disaster raises prices...get real. They are ruthless but we have no balls to tell them to go F themselves. Open up Alaska. Buy Iraq oil for a REASONABLE price. We saw here in California about how the energy companies ripped us off a couple of years ago with their self created "energy crisis". You will never see the oil companies lowering their profit margins to help the country and the economy. the only raise their profits during tough times and blame it on "supply and demand" Go look at the oil companies profits the past 5 years. Unbelievable.

  15. #15
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    [QUOTE=bitonti]"the OIL GOONS" where did you get this article?

    ...

    I work in logisitics and New Orleans is literally the biggest port of vessels, pipeline in that region of the country. Maybe the entire country. If they get wiped out Houston would boom, they aren't that far behind, but are also prone to natural disasters.

    Face it Wall Street can do alot of things it can even work it's own magic sometimes (currency exchange especially this is true), but Wall Street cannot manufacture a category 4 hurricane hitting the Mississippi delta.[/QUOTE]

    Bit, did the G, W & B keys on your keyboard break? I thought for sure you'd blame the big guy for this problem.

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