? Could Koch Industries trading of oil futures might be part of the reason for higher gas prices?

[Botany]

http://thinkprogress.org/report/koch-oil-speculation/?mobile=nc

Now I know that #2 product that the US exports is gasoline, we are producing
more domestic oil than we have for years, and that oil companies despite all
time record profits along w/ huge tax breaks but the price keeps going up and
up.

so to smart DUers:

How much of the gas prices have to do w/ international markets?

How much per barrel of oil is because of futures speculations?

Am I just paranoid or could the Koch Brothers be running up the prices in order to
try to manipulate voting in the up coming elections?

Thank you in advance for your wisdom.

[rfranklin]

1. Yes...a major cause...

Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least $27 of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand. Many experts interviewed by ThinkProgress argue that the figure is far higher, and out of control speculation has doubled the current price of crude oil.


http://thinkprogress.org/report/koch-oil-speculation/

[Lint Head]

2. I think this is totally correct. The Iran problem is just a small factor.

The financial powers that be are being protected. Not one banker responsible for the economic melt down has been prosecuted and the manipulation of the market is being ignored.

[Botany]

3. From the little I understand about the "futures markets" it seems to me that ....

.... the system is being gaming for profit and maybe some other reasons
because buying futures was a way that an airline company could have steady
prices for fuel for a year or so but now it looks like Goldman Sachs, the Koch
Brothers, and others are trading futures just as a way to make $.

[Lint Head]

8. I agree totally. We are being duped by the corporate psychopaths.

[liberal N proud]

4. Mostly the reason

[JohnnyRingo]

5. People buy futures on the gamble that prices will rise (or fall).

To buy enough to artificially manipulate the price would require a massive buy at a cost that will result in a huge loss when they sell. Not something the Koch Bros are known for doing.

As much as they hate Obama, they love their money more, and speculators are gambling on a politically hot spring in the Middle East. The trick is to sell just before it cools down and prices drop again.

It would be more logical to influence the politics here to raise the speculation that future oil production is in peril, so it's possible they bought low and are waiting for the peak to sell.

[Nye Bevan]

6. That would depend on whether they are long or short (nt)

[Initech]

7. Speculation trading should be a felony.

[orwell]

9. Not just the Koch's...

...but speculation in oil and other commodity futures is the dominant reason why prices can rise while demand falls or remains constant.

In essence, the futures market can and does create it's own reality if the right players get behind a trend.

[Botany]

12. thank you!

I just have a little bit of knowledge and I knew that supply has been steady
and domestic demand has gone some but I don't know all the other factors ...
international demand and market prices, speculation in the futures market,
and international "things" .... that change the cost of oil.

Now a simple supply side argument would be that every time you drive your
car the price should go seeing that the supply of oil is "finite" but i can't help but wonder
how much speculation and Koch Brother Speculation play into the price of gasoline.

[a kennedy]

10. Kicking this....

I find it very interesting.

[joeybee12]

11. Also being done to put pressure on getting Keystone approved...

The Krotch Bros stand to make a fortune off that monstrosity.

[They_Live]

13. Don't forget funneling part of that profit

into their secret Super PACs during the election year.

[malaise]

14. Is sabotage of the American ecnomy

TREASON?