Big Oil and Hedge Funds in Collusion?
Congress must investigate this. Oil is demand inelastic. This means
that more (much more) profit can be made at elevated levels of oil
price (with lower demand) than with lower levels of oil price ( and
increased demands).
The Hedge funds which hold up the price of oil with futures contracts
will surely be making a loss at these points but those losses are more
(much much more) than offset by the huge profits which the oil
companies make and some of which are siphoned to the hedge funds.
How many contracts does it take to drive prices up? Not many. Remember
the idiot who took to US$100 a barrel simply to have a milestone?
Congress must check the books of both Big Oil and Hedge Funds to see
if there's any transfer of money.
.
Relevant Pages
- Re: Cheap oil forever!
... $14.00 per barrel ... "since the early 1970s, real oil prices have risen" ... >I did not say the price rise since then had been steady, ... rent seeking by those OPEC fellows but rising cost of getting the ...
(sci.econ) - Olson: New Technology, Old Technology, and the Future
... New Technology, Old Technology, and the Future ... even though it is heavily manipulated by oil companies ... price of gas was only a small part of the total lifecycle cost of a car or ... is the price of fuel a significant part of the cost of the ...
(rec.audio.opinion) - Re: DON TIBERONE- YOU SHOULD HAVE LISTENED TO ME
... Well, duh, except price can't fall below the cost of production for long ... have cheated on their OPEC quotas. ... MORE oil than their "target", and the discrepancy was the GREATEST ... OPEC WILL defend the price by cutting production. ...
(misc.invest.stocks) - Re: "The Only Thing They Learn" -- does anyone else find it irritating?
... you mentioned that "oil refineries and the like require billions ... I'm sort of assuming that price help ... A 1/100 scale plant ought to ... to think that gasoline is going to stay at $4/gallon for more than a ...
(rec.arts.sf.written) - Re: Cheap oil forever!
... The trend clearly refutes the claims you made in the first post ... 70s _other_than_1998_ has the real price of oil been less than it was ... >rent seeking by those OPEC fellows but rising cost of getting the ...
(sci.econ) |
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