A Crude Awakening?

[buster]

http://macrobits.pinetreecapital.com/speculators-might-be-in-for-a-crude-awakening/


Quote:
Look at what happened to gold last week, and tell me why that can’t happen to crude?

Again, I stress that this is a short term price concern. I accept that longer term these other countries will grow and that energy demand will continue to grow. But peak oil might mean a price closer to $75-$80, rather than the current prevailing prices, which seem to be a function of speculative interest, rather than true underlying demand.


I like Marshall. Straight shooter.

 

[JHZR2]

So what did happen to gold? Did it actually fundamentally drop in valuation, or did the dollar's strength make it drop on a relativistic basis?

 

[sdowney717]

Dollar rose, Fed QE3 a bust, so interest in gold is down. Gold is speculative bubble like oil. All speculative, oil, gold, silver, corn, hogs, NG, stocks.

You think about this. NG is at extreme lows due to FRACKING creating a serious production boom. Fracking also helps oil production. NG usage is less the production so prices fall. IF oil production were to rise significantly and take pressure off the ME war situations, then speculators would relax on the price of oil. To me people are stupid if they think increased oil production wont bring down oil prices. the dumb people just swallow what the greens feed them, falling into the green energy control scam.
Like windmills!
http://blogs.telegraph.co.uk/news/jamesdelingpole/100142400/wind-farms-even-worse-than-we-thought/

 

[pbm]

Oil will be down to about $70 or $80 by mid-summer unless Israel attacks Iran or vice-versa.

 

[Drew99GT]

Great points. Which proves the supply and demand argument is total bunk as to why this current little price spike occurred.

 

[addyguy]

Not that I'm a genius speculator or anything, BUT, this assertation mirrors my own thoughts on this subject exactly - I've thougth recently that the 'real' price oil of should be around $75-$85/barrel.

 

[rk1407]

Originally Posted By: sdowney717
Dollar rose, Fed QE3 a bust, so interest in gold is down. Gold is speculative bubble like oil. All speculative, oil, gold, silver, corn, hogs, NG, stocks.

You think about this. NG is at extreme lows due to FRACKING creating a serious production boom. Fracking also helps oil production. NG usage is less the production so prices fall. IF oil production were to rise significantly and take pressure off the ME war situations, then speculators would relax on the price of oil. To me people are stupid if they think increased oil production wont bring down oil prices. the dumb people just swallow what the greens feed them, falling into the green energy control scam.
Like windmills!
http://blogs.telegraph.co.uk/news/jamesdelingpole/100142400/wind-farms-even-worse-than-we-thought/


+1,000. You are on the money. Nice to see some people have clarity on the situation! Nice article on the windmills too. I have seen estimates in North America of the bird kills and they are massive. Some are federally protected such as eagles, owls, etc. Shouldn't somebody be paying fines for this?

 

[buster]

Originally Posted By: addyguy
Not that I'm a genius speculator or anything, BUT, this assertation mirrors my own thoughts on this subject exactly - I've thougth recently that the 'real' price oil of should be around $75-$85/barrel.


Right Drew.

 

[sleddriver]

I among many would LOVE for them to experience a crude awakening. Make them take delivery and let em drown in the stuff.

 

[grampi]

Originally Posted By: sleddriver
I among many would LOVE for them to experience a crude awakening. Make them take delivery and let em drown in the stuff.


Amen!!! I'm sick of these aholes raping consumers!!!

 

[Tempest]

Originally Posted By: buster
http://macrobits.pinetreecapital.com/speculators-might-be-in-for-a-crude-awakening/


Quote:
Look at what happened to gold last week, and tell me why that can’t happen to crude?

Again, I stress that this is a short term price concern. I accept that longer term these other countries will grow and that energy demand will continue to grow. But peak oil might mean a price closer to $75-$80, rather than the current prevailing prices, which seem to be a function of speculative interest, rather than true underlying demand.


I like Marshall. Straight shooter.


This article is very interesting, and raises some good points. The one funny thing about this is that he talks about GOVERNMENTS keeping the prices high now via hidden oil reserves, and then speculates that they will "dump" oil in a few months for various reasons to lower prices, but at the end he blames the same high prices on "speculators"?

He has a serious flaw in his argument.

If governments are in fact hoarding oil, then they are intentionally restricting demand, which will raise prices. He's trying to have it both ways and it doesn't work.

 

[GMZ]

You know Ill say it here too, we enjoy (yes enjoy) one of the lowest *non subsidized* gas prices in the world.

The next part of this I will try to not go against any no no subjects. The cost of our empire is what subsidizes our petrol costs. There are a few estimates as to what oil WTI would be at if you include some type of per bbl cost for the military.

 

[Tempest]

Originally Posted By: GMZ
You know Ill say it here too, we enjoy (yes enjoy) one of the lowest *non subsidized* gas prices in the world.

The next part of this I will try to not go against any no no subjects. The cost of our empire is what subsidizes our petrol costs. There are a few estimates as to what oil WTI would be at if you include some type of per bbl cost for the military.

Great! So if we ban oil and mandate solar panels we don't need a military any longer?

 

[SteveSRT8]

Originally Posted By: Drew99GT
Great points. Which proves the supply and demand argument is total bunk as to why this current little price spike occurred.


Absolutely. We need some reigning in on speculation it would seem.

 

[GMZ]

Originally Posted By: Tempest
Originally Posted By: GMZ
You know Ill say it here too, we enjoy (yes enjoy) one of the lowest *non subsidized* gas prices in the world.

The next part of this I will try to not go against any no no subjects. The cost of our empire is what subsidizes our petrol costs. There are a few estimates as to what oil WTI would be at if you include some type of per bbl cost for the military.

Great! So if we ban oil and mandate solar panels we don't need a military any longer?


Is that all you got? Lol, the true cost we, as Americans, pay for oil is much higher than "spot".

 

[PandaBear]

Originally Posted By: Tempest
Great! So if we ban oil and mandate solar panels we don't need a military any longer?


We will pay a lot less for military if we tolerate a higher oil price, by which means is up to you (if you insist on going solar mandate).

I would prefer if your intelligence say we can tolerate higher oil price with other means and still come to the conclusion of a lowered overall net cost, but...

 

[Tempest]

Originally Posted By: GMZ

Is that all you got?


How much more do I need? I simply want you to put a number to your supposition.

Quote:
Lol, the true cost we, as Americans, pay for oil is much higher than "spot".

Without doubt, look at all the taxes and regulations that raise the price of oil products.