Nymex crude future is the one we’re all cackling about like a a bunch of old hens in here.
top right corner.
$10 in a matter of hours, with no global event changing supply or demand.
The entire slide based on investors speculating that the economic downturn may reduce demand.
But yeah, oil’s run into the $140’s is entirely to do with supply and demand and has nothing to do with the fact that over 70% of oil contracts are being purchased by speculators.
You can argue supply and demand for oil going from $20 to $75, and even that it will continue going higher as global demand slowly increases, but trying to say the slowly growing demand has directly resulted in the 600% increase is a bit illogical.
Any word on what cuased this big drop? The price had been just increasing slowly this morning.
http://money.cnn.com/2008/07/15/markets/oil/index.htm?cnn=yes
Oil prices plummeted Tuesday, down as much as $9.26 a barrel, as investors feared that the nation’s financial woes could cut into demand.
AKA, this is just more stupidity in the investment circles. Expect oil to go right back up again, and continue these wild rides between $130 and $150 until Congress does something to force oil back toward supply and demand pricing.
This speculation is rediculous.
I agree with JayS - how can anyone even talk about supply and demand factors when the freakin price drops $10 in an hour or two. That is obviously not supply and demand related.
What is going on with the Congress stuff to curb speculation in oil trading?
Its also interesting when the articles say “becuase investors thought this or that”.
How do they know that is the true reason why? Becuase they spoke with a couple investors? Or do they have chips in the brains of investors that simultaneously let them know what the investors are thinking throughout the day…
Does the price jump and fall on finger nail clippings?
No.
Why?
Because THERE IS NO DEMAND.
Demand is a part of the price whether people want to admit it or not.
I am done here.
So the oil price just dropped by around 7% in the last hour and a half
Did world wide demand also drop by 7% in the last hour and a half?..
“Nymex crude future”
its a crude future, it is suppose it predict where oil is going… its a guess at what demand is going to be in the future.
Good, because your constant “blame one thing, and only one thing” mentality is tiring. Asia is not the sole cause of all the problems in the world. Yes, it’s a contributer, and a big one, but it’s not the only one.
A couple pages back I listed about 8 things that have all caused oil’s run up in price. Supply and demand was at the top of the list, with the dollar’s decline and speculation.
Supply and demand we can control to a point, but they are long term changes. Same with the dollar though that’s even harder to control.
Speculation on the other hand is something we can control and change tomorrow if Congress would simply grow a pair. Set the margin requirements for oil contracts to match the margin requirements we already have for stock. You’d still have people invest in oil, which is necessary, but it would cut it back to more reasonable levels. Oil will not fall to $20 with this change, but it will fall some and it should stabilize the price.
Well I hope congress stops the speculators so I can pay $1.00/gallon again.:roll2:
Demand plays a part, but speculation plays a part as well.
Speculation is an affect of demand though.
China is not my one reason, demand is.
Supply and demand shape the general curve. Speculation makes it steeper. Bigger peaks, and, in the event we ever get there again, bigger troughs. With sharper curves from one to the other. I don’t see how people can blame only one element.
Oil goes up. Speculators think oil’s gonna go up and buy oil. Oil ends up going up a lot.
Oil goes down. Speculators think the oil bubble has burst. They sell and short oil futures. Oil goes down a lot.
In the current market, all we’ve seen is oil going up. People naturally assume it’s going to keep doing so and/or want to hedge against higher gas prices. Speculation is driving this market higher, even though the underlying causes are S&D related.
Thanks for not reading past the first sentence.
Where is your post listing 8 reasons?
Post #?
WASHINGTON (CNN) – President Bush on Tuesday pressed lawmakers to lift a ban on offshore oil drilling, saying “the only thing standing between the American people and these vast oil resources is action from the U.S. Congress.”
President Bush wants Congress to repeal a law that prohibits offshore oil drilling.
On Monday, the president lifted an executive order that prohibited offshore drilling. A 1981 law barring the practice remains in effect, however, and Congress would have to vote to repeal the law before any drilling could occur. Congressional Democrats have opposed efforts to repeal the ban.
“The sooner Congress lifts the ban, the sooner we can get these resources from the ocean floor to the refineries, to the gas pump,” the president said.
“Democratic leaders have been delaying action on offshore exploration, and now they have an opportunity to show that they finally heard the frustrations of the American people,” Bush said. “They should match the action I have taken, repeal the congressional ban and pass legislation to facilitate responsible offshore exploration.”