This is why Investors should be out of Oil markets

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Not gonna happen. Oil is a worldwide commodity and traded as such. Unfortunately get used to it. I didn't notice a lot of complaints when it dropped to $112 due to traders covering their positions.
 
Originally Posted By: Al
Not gonna happen. Oil is a worldwide commodity and traded as such. Unfortunately get used to it. I didn't notice a lot of complaints when it dropped to $112 due to traders covering their positions.


Yeah Al, and if there were a sudden glut of oil on the market (such as the release of some of the SPR), many of the speculators would be crushed. (See Amaranthe and natural gas positions.)
 
Originally Posted By: Al
I didn't notice a lot of complaints when it dropped to $112 due to traders covering their positions.


Exactly! And it was speculators who did it.

You can make money when it goes up, AND when it goes down.
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Yesterday was short covering.

One analysts on TV said though don't be surprised if the big wigs take it to $100, set a floor there, at work back up past the highs given any reason to do so.
 
Drew, it's amazing what the business class investors can achieve with prices...when they take hold of something and start shaking, they can drive it both ways, and profit on both....everyone else is along for the ride.
 
Markets can remain irrational longer than investors can remain solvent. The price of oil went too high and after the sell-off it went too low and it is trying to find its proper price. Oil is after all, just a market segment and one shouldn't put more than 5-10% of their play money in it... unless they know what they're doing? The recent oil craze was due, in large part, to the fact that ALL other sectors were suffering from MAJOR SUCKAGE. Most were late to the party and we all know that always ends *****.
 
It went too low? No way. From what I have been reading anywhere from $ 70.00-100.00 is more realistic. The speculators have raised it past a reasonable level.
 
Sure. One of the greatest coups of ingenuity was Accuweather in ..hmmm...1975 or 1976 where their models predicted a frost in Florida ..and they bought OJ futures ... They just got there first. Frozen OJ would have cost more either way. The availability and demand dictated the bid for the stuff.

In an environment where supply is, more or less, fixed, and demand can sweep upward rapidly, speculation can take a more commanding role in the ultimate price.
 
Originally Posted By: Tempest
So investors (aka speculators) are OK in corn, art, stocks, antiques...


Not really bothered by that. Don't think I am as directly affected by those like I am Oil. Plus I am disgusted with the price swings due to rumors and guesses about what may or may not happen.
 
Price fluctuations due to (whatever) are fine since you just pay more for the item (or items that it's a subcomponent of - aka wheat is to bread) ..but energy costs effect it all. There is no segment of existence that isn't impacted. It's an immutable fundamental.

The inflation that we're seeing now ..and the effects of the ethanol scam are to internalize our money and soak it up. This will reduce offshore utility of it ..and make them work even harder to expand or maintain a functional economy.

If you're paying for your oil in $$ ..and all the Americans are holding on to their $$ in rising internal costs ...how are you going to make a living selling to Americans ..to get their $$ to afford your petroleum
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work hard my good little mice. momma loves you.
 
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Not really bothered by that. Don't think I am as directly affected by those like I am Oil.

So this is all about you then? If someone else gets screwed that is OK?
 
Originally Posted By: Tempest
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Not really bothered by that. Don't think I am as directly affected by those like I am Oil.

So this is all about you then? If someone else gets screwed that is OK?


Are you qualifying him for membership??? Is this an interview?
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No Tempest. It is about millions of people that use oil everyday.

To bad most of the world loves screwing other people over for greed.

My point goes back to no competion and no real choice when it comes to Oil. It has to be bought. We are captives to it. I can really go without alot of the other things if they become high priced. I also don't think their prices move up and down in large amounts like Oil does. Oil I still need to buy.
 
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It is about millions of people that use oil everyday.

Oil use is only about 100 years old. What did people do before its use? They survived.
What you are actually saying is that you want the lifestyle that oil brings to your life at a price that you want to pay.
What was that about greed?
 
Originally Posted By: Tempest
Membership into what?


That's what I've been trying to figure out for some time. Now I do know it's one club that I'd never join if it would have someone like me as a member.
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