Regulate oil speculators

Discussion in 'Current Events' started by unionman, Jan 14, 2010.

  1. unionman

    unionman New Member

    NEW YORK -- Federal regulators are planning their first major step to rein in oil speculators. Whether it's enough to control future spikes in energy prices remains to be seen.
    The Commodity Futures Trading Commission on Thursday will consider setting trade limits on the New York Mercantile Exchange to keep fund managers and other "speculative" investors from wielding too much influence in the market.

    Speculators - investors who make money by trading oil contracts - have flooded the Nymex in recent years. They mostly bet that oil will get more expensive, leading many to believe that their presence in the market jacks up prices.
    The limits proposed by the CFTC would cap how many contracts traders could buy. Violators likely would be told to get rid of especially large positions. The CFTC also has the power to issue fines and revoke trading privileges on the exchange.
    Speculators got most of the blame when crude soared above $147 a barrel in 2008. But economists who studied commission data point out that exchange-traded funds and other investors have historically moved in the opposite direction of the market, selling when prices rise and buying contracts when prices fall.
    Real-Time Quotes
    01/14/2010 2:42PM ET


    BATS Real-Time Market Data by Xignite


    CFTC Commissioner Bart Chilton said the commission should start slowly, keeping caps high enough that most exchange-traded funds and other speculative investments wouldn't immediately feel pressure to change their trading practices.
     
  2. av8torntn

    av8torntn Well-Known Member

    This is horrible. We can all agree I think that speculation helps create price stability. Two adults should be allowed to enter into contract with each other over the prices of commodities. More insane government intervention. Very sad indeed.


    "But economists who studied commission data point out that exchange-traded funds and other investors have historically moved in the opposite direction of the market, selling when prices rise and buying contracts when prices fall."

    So our government in the name of protection is going to now over regulate this and cause oil and other commodities to soar. Here's to hoping the population to rise up to this proposed tyranny.
     
  3. unionman

    unionman New Member

    When profits come at the expense of the public not being able to get to work, the Government stopping greed is good.
    How can you justify the speculators driving up oil to 150 dollars a barrell when there is no shortage?
    Its greed plain and simple and we pay for it at the pump and evrywhere. Oil is to critical to the world and our economies to let a few get rich while they throw the world into trouble.
     
  4. tieguy

    tieguy Banned

    I'd like to think we will soon be paying fifty cents a gallon for gas but I fear its more worthless regulation.
     
  5. Lue C Fur

    Lue C Fur Evil member

    I have an idea...LETS DRILL AND USE OUR OWN OIL. What about all the nat gas we have???

    Maybe then prices wont be so high since we are using our own and there is more oil in the market.

    Thats a stupid idea though...we should just build windmills, electric cars, and ban nuclear power plants. Heck when we force eveyone to have electric cars we can pass the cap and tax bill and really get some tax money since it will come from the super high electric bill used to charge the cars. Then we will have more money to use for Obamacare. Gotta love redistrubution of wealth.
     
  6. unionman

    unionman New Member

    Just the idea that there is legislation coming will drop the price of oil. There is no reason it should be at 80 dollars a barrel. There is plenty of the stuff and there are no shortages, just pure mad money being made at the publics expense.
    I would like to see us using some of that oil we got in the rocky mountains that's hard to get at. Its in the rocks and expensive to extract.
     
  7. av8torntn

    av8torntn Well-Known Member

    You take an emotional position not based in any fact. I believe this is a more accurate view of speculation and the vital role it plays to protect consumers.

    Here
     
  8. av8torntn

    av8torntn Well-Known Member


    To add: The relationship between the value of a dollar and the value of a barrel of oil? Instead of of having anger at someone who buys the future production of a barrel of oil why not focus your anger on the destruction of the value of the dollar? Just a thought.
     
  9. tieguy

    tieguy Banned

    if I'm an oil baron I stop producing oil if I feel the price offered is too low. You have to be careful when you start discussing price controls.
     
  10. bbsam

    bbsam Moderator Staff Member

    I always knew Satan had to be a Republican. I always thought it was Cheney. Lue, you big pretender!:happy2:
     
  11. unionman

    unionman New Member

     
  12. unionman

    unionman New Member

    U.S. says consumer prices rose 2.7% in 2009, a sharp increase from 2008, due primarily to higher gasoline prices.
     
  13. 1989

    1989 Well-Known Member

    I hope they do something about orange juice speculators.
     
  14. unionman

    unionman New Member

    If I could put it in my gas tank I hope that they would.
     
  15. 1989

    1989 Well-Known Member


    If you regulate one you should regulate all. You can't only complain when you are on the wrong side of the trade.
     
  16. wkmac

    wkmac Well-Known Member

  17. unionman

    unionman New Member

    Watch my elected government do just that.
     
  18. tieguy

    tieguy Banned

    I understand your point but I don't see govenment intervention via price controls fixing the problem.
     
  19. unionman

    unionman New Member

    They are going to limit the way its done not the price. people are manipulating it and thats when you need regulation because its too important a comodity for a few weasles to get rich off of while it destroys the worlds economy.
     
  20. wkmac

    wkmac Well-Known Member

    Unionman,

    You might find this article on oil speculation of interest and on the left margin of the page under the Oil and Energy heading you might find much more of interest. Happy reading!

    :peaceful: