oil and the commodities market

oil and the commodities market

Joined: April 21st, 2005, 4:12 pm

February 25th, 2012, 3:10 pm #1

I've often wondered why the government allows oil to be on the commodities market, especially considering the way oil prices can influence the economy. The traders are a part of the 1% that actually are evil and greedy.
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Joined: February 24th, 2002, 4:17 pm

February 25th, 2012, 3:38 pm #2

Simply, oil, like orange juice, bacon (pork bellies), corn, and gold are commodities freely exchanged on the market. These have been generally free of government regulation (other than laws aimed at fraud and manipulation and disclosure). It is as close as we come to the classic market place of yore. A simple study of history would show you the parallel in the middle ages in spice, silk and gold. Spice trade ships had futures bought on them, just like oil today.

It is not the commodity at issue, as it is in great demand world wide, but an element of 'speculation" that pushed up prices. Look at the rapid rise in gold, based on fear and loathing. Yes, there have been gold run-ups in the past, and none have been needed.

The problem is that oil is beyond anyone's control as a consumer. India, China ans Latin America now have an insatiable need for it, even as the Wet's need for oil is slowly declining. Control is in the hands of the produces, especially if you are a dictator like Chavez and sitting on a load of oil. Even the oil companies themselves have a vested interest in keeping supply tight, as it results in the ability to set higher prices.



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Last edited by modeldad on February 25th, 2012, 3:40 pm, edited 1 time in total.
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Joined: April 25th, 2011, 2:27 pm

February 25th, 2012, 4:39 pm #3

Most come from the Middle-East!!

Bo
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Joined: February 24th, 2002, 4:17 pm

February 25th, 2012, 4:44 pm #4

you missed the point of the original poster.

Now read his post and my response.



There is no such thing as an unbuildable kit, just some kits one may consider not worth building.



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Joined: April 16th, 2004, 4:35 pm

February 25th, 2012, 4:46 pm #5

I've often wondered why the government allows oil to be on the commodities market, especially considering the way oil prices can influence the economy. The traders are a part of the 1% that actually are evil and greedy.
Interestingly enough, most of the oil consumed in the US is from domestic sources, with just a minimal percentage imported from abroad - if Americans would agree to drive more economical vehicles, you could be wholly self-sufficient. Of course, you would also need to increase your refineries' capabilities, which is one more tool in the oil companies' arsenal, by creating artificial scarcity they can keep the prices up.

Rest assured, the oil companies will not go under, as they earn a percentage every step of the way, from the well to the pump, just look at last year's profits. I do not mind them making profits, I am just fed up that they do it by gouging their customers - especially the lower income brackets and old age pensioners suffer extremely.

Cheers,

Jens



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1/87er, die feinmotorisch flinke Elite des Modellbaus.
Last edited by JensOMehner on February 25th, 2012, 4:51 pm, edited 1 time in total.
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Joined: April 25th, 2011, 2:27 pm

February 25th, 2012, 4:53 pm #6

you missed the point of the original poster.

Now read his post and my response.



There is no such thing as an unbuildable kit, just some kits one may consider not worth building.



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The Sheiks control the supply, and our Gov't has hugh reserves it can release and/tap to help the 'market' give a more accurate 'supply/demand' to this VERY controlled commodity!!

There are things 'our Gov't' can do to hold down oil prices by increasing supply!!

Am I forgiven?? LOL!!

Bo
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Joined: February 24th, 2002, 4:17 pm

February 25th, 2012, 5:00 pm #7

They are called strategic reserves for a reason. And they are not unlimited. They have been used before, but the effect was very short term. As far as I am concerned, using them is like going into debt, living off credit, hoping replacement (oil or money) will come from some where at not a high price.

If Israel goes off the deep end and make one false move towards Iran, that reserve may be a life saver.

Since you don't like government intervention, why do you look to the government for the solution. US oil companies are not making use of the drilling rights they now have. Refinery capacity has not been expanded for years. Oil companies have no incentive to ramp up production, especially in the US where demand is decreasing.

Interesting to observe that Iran has a lot of oil, but little gasoline for their cars.



There is no such thing as an unbuildable kit, just some kits one may consider not worth building.



BUY THIS BOOK
http://tinyurl.com/Ididntseeitcoming
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Joined: April 25th, 2011, 2:27 pm

February 25th, 2012, 5:08 pm #8

Interestingly enough, most of the oil consumed in the US is from domestic sources, with just a minimal percentage imported from abroad - if Americans would agree to drive more economical vehicles, you could be wholly self-sufficient. Of course, you would also need to increase your refineries' capabilities, which is one more tool in the oil companies' arsenal, by creating artificial scarcity they can keep the prices up.

Rest assured, the oil companies will not go under, as they earn a percentage every step of the way, from the well to the pump, just look at last year's profits. I do not mind them making profits, I am just fed up that they do it by gouging their customers - especially the lower income brackets and old age pensioners suffer extremely.

Cheers,

Jens



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1/87er, die feinmotorisch flinke Elite des Modellbaus.
The US is NOT Europe!! Our cities are NOT designed to walk about in!! The closest supermarket to my house, and I live in a big US city, is about 2 miles away!! Try walking/carrying your shopping goods for 2 mile!!! And with summer temps in the 100s F.; thatd be fun!!

Four of us took a car trip this summer up to the Canadian border, 2,000 miles one way!! With luggage and four adults, try that in a Smart Car!! Even Hybrids aren't big enuff and priced right for such a trip!!

And Battery cars are a JOKE!!! Can't drive around the block twice w/o stopping a charging the battery 8 hrs!! Technology ain't there, yet!!

Do you know of a small/economical engine that can drive a big SUV??? If you do, you can get rich!!

Bo
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Joined: April 25th, 2011, 2:27 pm

February 25th, 2012, 5:11 pm #9

They are called strategic reserves for a reason. And they are not unlimited. They have been used before, but the effect was very short term. As far as I am concerned, using them is like going into debt, living off credit, hoping replacement (oil or money) will come from some where at not a high price.

If Israel goes off the deep end and make one false move towards Iran, that reserve may be a life saver.

Since you don't like government intervention, why do you look to the government for the solution. US oil companies are not making use of the drilling rights they now have. Refinery capacity has not been expanded for years. Oil companies have no incentive to ramp up production, especially in the US where demand is decreasing.

Interesting to observe that Iran has a lot of oil, but little gasoline for their cars.



There is no such thing as an unbuildable kit, just some kits one may consider not worth building.



BUY THIS BOOK
http://tinyurl.com/Ididntseeitcoming
Working 'for' or 'against' me????? LOL!!

We could go on forever, huh??

Bo
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Joined: April 16th, 2004, 4:35 pm

February 25th, 2012, 5:15 pm #10

The US is NOT Europe!! Our cities are NOT designed to walk about in!! The closest supermarket to my house, and I live in a big US city, is about 2 miles away!! Try walking/carrying your shopping goods for 2 mile!!! And with summer temps in the 100s F.; thatd be fun!!

Four of us took a car trip this summer up to the Canadian border, 2,000 miles one way!! With luggage and four adults, try that in a Smart Car!! Even Hybrids aren't big enuff and priced right for such a trip!!

And Battery cars are a JOKE!!! Can't drive around the block twice w/o stopping a charging the battery 8 hrs!! Technology ain't there, yet!!

Do you know of a small/economical engine that can drive a big SUV??? If you do, you can get rich!!

Bo
I did not say electric or Smart car, just more economical with a better mpg and there are plenty of good-sized sedans and station wagons with excellent mpg available from Europe and Japan.

How many Pick-ups are driving around the US which are never used in their intended capacity, namely load or tool carrying? Of those which are used as intended, how many never haul more than a station wagon-sized load around? Why SUVs when you never go off-road, just to impress the neighbours or to compensate for physical defects?

Building and driving more economical cars does not mean driving shoe-boxes and driving can be loads more fun in a well-built sedan with good handling characteristics.

Cheers,

Jens



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1/87er, die feinmotorisch flinke Elite des Modellbaus.
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