"X ` Man" wrote in message
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On 3/8/12 11:10 PM, Califbill wrote:
"X ` Man" wrote in message
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Have Oil Speculators Already Priced In War With Iran?
By Matthew Philips on March 07, 2012


The last time the price of Brent crude closed below $100 a barrel was
Oct. 6, 2011. It’s since gone up nearly 30 percent, to a high of $126.20
on March 1. Tensions over Iran’s nuclear program have people spooked
that a potential attack would disrupt the country’s 2.2 million barrels
of daily oil exports. And so money has been pouring into oil futures
contracts, driving up the price without any significant change in the
underlying supply-and-demand fundamentals. Only the threat of one.

So who’s buying?

Talk to oil analysts these days and chances are they’ll tell you that
more than half the spike in the oil price is due to
speculators—specifically noncommercial users. That’s jargon for
investors who are buying up futures contracts not because they intend to
use the oil, but because they think it’s a good investment. These aren’t
airlines or refining companies; these are money managers betting that
the price will go up. And so far they’ve been right, thanks to themselves.

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And we should allow oil speculating assholes to control our economy?


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Then invest in oil futures and make big bucks.

It's not in the national interest to help drive up the price of oil
products by speculating.
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Why not? Southwest Airlines had less than cost jet fuel for at least 3
years as they hedged the costs and bought futures. Most of the rise in cost
in oil is really the falling dollar. Why did we go to war in Iraq when
Kuwait was invaded? Because Sadam H. wanted to make Euro's or a basket of
currencies the petro dollar. Which would have instantly stopped our
printing presses of money. Would have effectively removed the USA Dollar as
the worlds reserve currency. That $50 barrel of oil is now a $100 dollar
barrel because the dollar is worth about 1/2 of what is was when oil was the
$50 price. Your Econ class must have been bonehead Econ.