General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums? Could Koch Industries trading of oil futures might be part of the reason for higher gas prices?
http://thinkprogress.org/report/koch-oil-speculation/?mobile=ncNow 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
(13,200 posts)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
(15,064 posts)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
(70,442 posts).... 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
(15,064 posts)liberal N proud
(60,332 posts)JohnnyRingo
(18,614 posts)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
(25,406 posts)Initech
(100,029 posts)orwell
(7,765 posts)...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.
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
(29,606 posts)I find it very interesting.
joeybee12
(56,177 posts)The Krotch Bros stand to make a fortune off that monstrosity.
They_Live
(3,223 posts)into their secret Super PACs during the election year.
malaise
(268,664 posts)TREASON?