Oil price bubble?

[accent]

I think I am on pretty firm ground in saying domain prices have dipped in recent months, and in saying that the overall world/USA economies are to blame. One of the largest factors in the global decline is the price of oil, which has doubled in the last year.

I have already mentioned that I believe that oil prices are behaving like a speculative bubble. Here is a column by a writer who agrees:
http://news.yahoo.com/s/ap/20080531/ap_on_bi_co_ne/all_business;_ylt=Aki7THbeJuF_hkqIYNxDYcib.HQA

When buyers flock to a market that they know little about, and prices are increasing far more quickly than demand would justify then it is a clear sign that the top is near.

"The rise in price of oil has weakened demand for the physical commodity, but it has boosted demand for the financial commodity since more investors are chasing returns," said Jeffrey Kleintop, chief market strategist at LPL Financial.

In the last five years, investment in index funds tied to commodities has grown from $13 billion to $260 billion, and the price of the 25 commodities that compose those indices have jumped 183 percent

..... data showing annual Chinese demand for petroleum, based on government figures, has increased over the last five years by 920 million barrels; over the same time frame, the increase in demand for petroleum futures almost equals that at 848 million barrels.

 

[Rubber Duck]

I totally disagree. Oil has fallen on renewed confidence in the dollar. That confidence is almost certainly misplaced. Direction of Oil price is very uncertain in short-term.

 

[goodkarmaco]

Everyone blames the oil companies. The real truth is since the twin of toilet paper, the U.S. dollar has dropped to such a drastic low it buys less.

Oil is high because of many things, not just because of speculators. As some have stated the printing press is spitting out more and more money, $150 billion to give everyone a $600. freebie for economic stimulus, 100 billion to bail out Bear Stearns, the war, etc.

We are getting paper blitzed and the facts are the M3 money supply is 17 % for this past year!

Anyone know what hyperinflation is?

 

[Sam]

I totally disagree. Oil has fallen on renewed confidence in the dollar. That confidence is almost certainly misplaced. Direction of Oil price is very uncertain in short-term.

Short term wise , if you followed my advice, oil just went down $5 in the last couple of days. $$$$.

Like this one?


http://www.namepros.com/the-break-r...65-000-per-cent-notes.html?highlight=zimbabwe


:td:

INCREDIBLY, it has gone up from 580,000,000 to the dollar to 971,500,000 to the dollar in 4 DAYS!

 

[holyroller]

If I had the power in my hands the first thing I'd do is stop this uncontrolled speculation in the oil markets. These major speculators don't give a damn about you and I. The high price of food will not make them loose a minute of sleep.

GIL

I always find it odd that people can speculate on commodities in the way they do and that prices are actually based on this. The whole thing seems a bit of a joke.

Of course, as I have stated and many others, this speculation is only made possible by the increase in money supply.

Riots may well be the answer, but to stop prices going up like they are, we need to stop the likes of the FED, BoE, etc.. bailing out the banks and financials effectively transfering all the wealth to them while the average joe suffers.

Things can get a lot worse in the short term.

I remember hearing this statement a while back.

Although it makes sense for the FED and BoE to bail out the financials, what doesn't make sense, is why the public allow it.

 

[holyroller]

Just because somewhere is worse (inflation wise) like the issues with the Z$ does not excuse the corruption and lies of the UK, Euro, US, Aus, NZ, etc.. governments.

I don't think we should allow governments to get away with these lies with the excuse that we have it better than whats a name country, while speculators and oil companies become rich and investment banks squander our savings.

 

[GILSAN]

Just because somewhere is worse (inflation wise) like the issues with the Z$ does not excuse the corruption and lies of the UK, Euro, US, Aus, NZ, etc.. governments.

I don't think we should allow governments to get away with these lies with the excuse that we have it better than whats a name country, while speculators and oil companies become rich and investment banks squander our savings.

Hey Adrian I couldn't agree with you more. Just tell me the magic formula to get rid of these blood suckers. Perhaps we do need riots and a new revolution to change the mentality of those who govern us. Let me know the trick and I'll vote you for President!

As I said on a previous post I would like to see Crude Oil eliminated from the comodities trading at Nymex for starters! That would elimate the 15-20% that we all are paying extra because of speculators. You don't need a calculator to figure that out!

GIL

 

[Mark]

Thread cleaned up somewhat ...

 

[holyroller]

Thread cleaned up somewhat ...

I guess thats on way to put it.