Comments on: what is the reason for oil price hike? http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm Questions and Answers Fri, 10 Feb 2012 00:02:05 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Shard F http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm/comment-page-1#comment-1723 Shard F Thu, 11 Jun 2009 07:49:04 +0000 http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm#comment-1723 Google "enron loophole" for insight into this question. Big money stands to make even more big money through unregulated commodities speculation. The Senate has been aware of this since at least September 2007: http://levin.senate.gov/newsroom/release... To quote from that link: "Earlier this year, [2007] the Subcommittee released a report, “Excessive Speculation in the Natural Gas Market,” which found that a single hedge fund named Amaranth dominated the U.S. natural gas market during the spring and summer of 2006, and that its large-scale trading significantly distorted natural gas prices from their fundamental values. The investigation examined millions of trading records from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) to track and analyze natural gas trading in 2006. The report concluded that the current regulatory system was unable to prevent price distortions and excessive speculation, because much of Amaranth’s trading occurred on an unregulated market. The report recommended closing the Enron loophole to restore the CFTC’s ability to police all U.S. energy markets." That's natural gas, but oil prices are subject to the same skew. Google "enron loophole" for insight into this question. Big money stands to make even more big money through unregulated commodities speculation. The Senate has been aware of this since at least September 2007:

http://levin.senate.gov/newsroom/release...

To quote from that link:

"Earlier this year, [2007] the Subcommittee released a report, “Excessive Speculation in the Natural Gas Market,” which found that a single hedge fund named Amaranth dominated the U.S. natural gas market during the spring and summer of 2006, and that its large-scale trading significantly distorted natural gas prices from their fundamental values. The investigation examined millions of trading records from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) to track and analyze natural gas trading in 2006. The report concluded that the current regulatory system was unable to prevent price distortions and excessive speculation, because much of Amaranth’s trading occurred on an unregulated market. The report recommended closing the Enron loophole to restore the CFTC’s ability to police all U.S. energy markets."

That's natural gas, but oil prices are subject to the same skew.

]]> By: Mark http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm/comment-page-1#comment-1721 Mark Thu, 11 Jun 2009 07:49:04 +0000 http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm#comment-1721 The quantity of petroleum is decreasing, and the demand is increasing. The quantity of petroleum is decreasing, and the demand is increasing.

]]> By: John B http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm/comment-page-1#comment-1722 John B Thu, 11 Jun 2009 07:49:04 +0000 http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm#comment-1722 you are the reason. and me. and everybody who buys gas or petroleum products. supply and demand, that's the name of the game. we demand tons of oil so up goes the price. works like that in all markets and the markets rule. always have. always will. you think it's bad now? wait till august when peak summer driving happens. ooooooooh yoweeee. how does six bucks a gallon sound? haha comair. you know less about petroleum economics than you do about flying. wouldn't have thought such a thing possible. hahahahaha. racist too. you are the reason. and me. and everybody who buys gas or petroleum products. supply and demand, that's the name of the game. we demand tons of oil so up goes the price. works like that in all markets and the markets rule. always have. always will. you think it's bad now? wait till august when peak summer driving happens. ooooooooh yoweeee. how does six bucks a gallon sound?

haha comair. you know less about petroleum economics than you do about flying. wouldn't have thought such a thing possible. hahahahaha. racist too.

]]> By: joe http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm/comment-page-1#comment-1720 joe Thu, 11 Jun 2009 07:49:04 +0000 http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm#comment-1720 greed! greed!

]]> By: Penguin http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm/comment-page-1#comment-1717 Penguin Thu, 11 Jun 2009 07:49:04 +0000 http://askalandman.com/what-is-the-reason-for-oil-price-hike.htm#comment-1717 When the value of the money used to buy oil goes down the price goes up. The demand for oil keeps rising, so they (the oil companies) can justify the price. When the value of the money used to buy oil goes down the price goes up.

The demand for oil keeps rising, so they (the oil companies) can justify the price.

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