Don't knock speculators

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President Obama’s Justice Department wants to go after oil speculators on Wall Street. Perhaps he should look at his policies as the reason for spikes in oil prices.

Every stock or commodity traded on Wall Street is an act of speculation. Traders try to guess whether the price of a stock or commodity is going to go up or down. They base their guess/speculation on past performance and present conditions, but mostly on future outlooks. If Apple Inc. announces a new i-Gadget, there will be more buyers and sellers of Apple stock, based on the fact that Apple makes more money when they release more i-Gadgets. If South Florida has a deep freeze in early March, traders would buy orange futures assuming orange prices are going to rise based on an orange shortage because of the freeze.

Stock prices rise on rosy profit outlooks. Commodity prices rise on gloomy supply outlooks. Apple Inc. is a stock. Oranges are a commodity. Oil is a commodity. When traders speculate on the future of oil prices, they see an increase in worldwide demand and no increase in production from OPEC.

Most of all they see an administration bent on stifling domestic oil production – no drilling in the Arctic National Wildlife Refuge; a moratorium on drilling in the Gulf of Mexico; no new drilling off our coasts; no new permits to drill on federal lands; and cancellation of the Keystone Pipeline. Plus, Obama has unleashed a more powerful Environmental Protection Agency to over-regulate and penalize domestic energy producers.

Obama once said, “Under my policies energy prices would necessarily skyrocket.” If you were an oil trader, what would you speculate the price of oil would do?

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Cdr4500
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Cdr4500 04/26/12 - 11:18 pm
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LOL!!!
Unpublished

LOL!!!

faithson
5145
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faithson 04/26/12 - 11:42 pm
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gotta love how every time a

gotta love how every time a problem is addressed by republicans it is always discussed in it's simplest terms with the findings being even simpler it's 'Obama's fault'. If only He would go away we could have 2 dollar a gallon gas again... just because THEY SAY SO !

constituent
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constituent 04/27/12 - 02:23 am
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President Barack Obama has

President Barack Obama has made it clear that his campaign strategy is to shed light on the Republican's attempts to blame him for soaring petroleum prices. " Some politicians see this as a political opportunity" Only in politics do people root for bad news, and do they greet bad news so enthusiastically. The Republican has called for more oil to be drilled in this country. But the president has countered, calling that line of thought" a bumper sticker". That's a strategy to get politicians through an election. Energy analysts have said that the cause of rising gas is much more complicated than simply drilling for more oil. Everything from an improving economy to turmoil in the Middle East affects prices.The United States is producing more oil today than at any time in the last eight years, with more working oil and gas rigs than the rest of the world combined. And over the last three years, the White House has opened millions of acres for oil and gas exploration, including signing an agreement with Mexico that will make more than 1.5 million acres in the Gulf available for exploration and production. And oh yeah, this has nothing to do with the Keystone pipeline the GOP want so desperately, and Big Tycoon Oil Man Mitt Romney who said if elected president gas prices will be $2 a gallon. Some people said anything to sell their soul for the rich.

Craig Spinks
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Craig Spinks 04/27/12 - 03:06 am
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Mr. Waters misconceives the

Mr. Waters misconceives the nature of oil speculation as being congruent with that of land speculation. While land speculation is based upon long-term(one year minimally) increases in real values, OS is founded upon creating and advantaging short-term fluctuations in oil prices. There are big profits for banks and pension funds in a multiplicity of small speculator-favoring changes in oil prices over a short period of time.

Fundamental_Arminian
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Fundamental_Arminian 04/27/12 - 03:12 am
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Bob Waters has written a good

Bob Waters has written a good letter about the way government practices and policies affect speculators' prices for oil. If our president were to hint that he plans to start issuing drilling permits, oil prices would drop. If Mitt Romney wins in November and says in his victory speech that he wants to drill, drill, drill, the speculators will get the message, and oil prices will drop like a rock.

As to the Keystone pipeline, our president's main reason for opposing it may be Warren Buffett, an important contributor whose Burlington Northern Railroad now transports the oil that otherwise would be delivered by pipeline.

Techfan
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Techfan 04/27/12 - 03:51 am
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Of course the unions are in

Of course the unions are in favor of the pipeline and have more votes than Buffett, so maybe it's not a political decision. We wouldn't want to take a long hard look at a pipeline that will carry one of the dirtiest forms of oil right through the middle of our country would we? Shucks, if it's not approved, Canada won't be able to ship its oil duty free to Asia.

Bizkit
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Bizkit 04/27/12 - 06:29 am
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Our Green Energy Sepeculating

Our Green Energy Sepeculating President is against speculatin'???
The Keystone XL project: The final environmental impact report was released on August 26, 2011. It stated that the pipeline would pose "no significant impacts" to most resources if environmental protection measures are followed, but it would present "significant adverse effects to certain cultural resources". In September, 2011, Cornell ILR Global Labor Institute released the results of the GLI KeystoneXL Report which evaluated the pipeline's impact on employment, the environment, energy independence, the economy, and other critical areas. In the summer and fall of 2011, protests brought the challenge to the White House, leading ultimately to the President's November, 2011 postponement of the decision until 2013.
Obama's decision has nothing to do with oil or economics just political theatre for re-election. It is all about "cultural resources".

carcraft
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carcraft 04/27/12 - 06:46 am
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People in Obama’s

People in Obama’s Environmental Protection Agency said they need to hit oil companies hard and crucify them to set an example. Then we are surprised when energy costs increase under Obama when he stated that increased energy costs was one of his goals. The EPA is just one lever Obama has to help do it. President Obama has speculated on “green energy”. Obama had his green energy job training program, his Nobel Prize winning energy Secretary back Solyndra, Fisker Motors, Ener1, A123 etc with billions of dollars and every one of these programs or companies have been failurses. The difference between Obama and speculators is speculators use their own money, Obama uses your tax dollars!

Bizkit
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Bizkit 04/27/12 - 07:18 am
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Obama couldn't get his way

Obama couldn't get his way (with cap and trade) so he is coming in the back door using the EPA for a legislative function. I bet those nails hurt with the crucifixion-Ouch, so does this mean Obama orders torture and intimidation????? People should remind the president with no ecoonomy there is no "culture", and ask should cultural issues trump energy and economic issues. So they couldn't find a direct environmental impact but then turn around and say it may impact cultural resources-What does that mean? That includes things like huntable populations of waterfowl, fishable streams, clean water, and access to natural resources in addition to historic resources like shell mounds, buildings, and shipwrecks. Say what?????? Now tell me how intelligent our president is. Sheez!!!! So its all about preserving hunting and fishing??????

Riverman1
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Riverman1 04/27/12 - 07:26 am
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ANYTHING that increases

ANYTHING that increases production in this country is bad for Democrats. They won't be happy until we live in villages barefooted running spinning looms by hand.

Iwannakno
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Iwannakno 04/27/12 - 07:33 am
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I have a simple solution...We
Unpublished

I have a simple solution...We send a directive to every middle eastern oil producing country that we will no longer be your policee officer. Lower the oil prices for our country or we will let you stand on your own and wait until you are destroyed and then come in and take it all anyways. The blood and sacrifice of American Service men and women in their countries should gaurantee we get premium oil prices...FOREVER!!

TParty
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TParty 04/27/12 - 07:34 am
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Gasoline fell for a tenth day

Gasoline fell for a tenth day straight. Should we thank the President for that?

Bizkit
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Bizkit 04/27/12 - 07:43 am
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No remember Obama said he has

No remember Obama said he has no control over gas prices so he has no impact. Also all our problems are Bush's fault so in "fairness" we should give Bush credit for dropping prices. Seems logical..

Retired Army
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Retired Army 04/27/12 - 07:46 am
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Come on gang. Tparty is

Come on gang. Tparty is absolutley right. Where is the credit? Carcraft, riverman, bizkit,? 10 days of dropped gas prices. Now it's NOT our President's doing? Which way do you want it?

"Oh what tangled webs".

Bizkit
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Bizkit 04/27/12 - 07:59 am
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I fear many Obamanites maybe

I fear many Obamanites maybe ideologues of a similar ilk. They don't care about what you think, nor your freedom, its all about how "they" know what's best for you, our culture, and our environment. The ends (a utopian star trek ideal-he must a been a couch potato watchin' too much TV) justifies the means (which is obviously ruthless-as Alinsky suggests). I fully believe if Obama could end our dependence on oil by giving Iran a nuclear bomb-he would give them a thousand of them. Scary dude-beware the ideologes. He will be known as the singin',dancin' CULTURE president because he's cool (and could be a regular on Saturday Night LIve-he still can't play the sax like my main man Bill). This election isn't about jobs, the economy, etc. it's about CULTURE and FAIRNESS.

Bizkit
30821
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Bizkit 04/27/12 - 07:52 am
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Retired Army, I'm just

Retired Army, I'm just quotin' the prez-he said the hike isn't his fault so logically he can't claim any impact. Clearly we know how the prez wants it-everything bad -Bush ,everything good-me.

TParty
6003
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TParty 04/27/12 - 07:57 am
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Bizkit- This article and

Bizkit- This article and millions others blame the President of the United States when the prices were rising. This article said "Don't knock speculators!" and went on about the President. Well, now the prices have gone down ten days in a row- anyone going to praise the President?

Bizkit
30821
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Bizkit 04/27/12 - 08:02 am
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But the president stated he

But the president stated he had no impact on the price of gas so you can't have it both ways. It's logic. YOu can't claim I have no impact on the price of gas,and then when prices go down claim a victory. OOoops I almost forgot you can't reason with an ideologue. Please pardon my faux pax.

carcraft
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carcraft 04/27/12 - 08:22 am
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Retired Army and TParty, I

Retired Army and TParty, I well give credit to Obama for lower gas prices. He was lying, as usual, when he said he had no control over gas prices. Then Obama ran them up to twice as much as when he entered officejust like he said he wanted. If Obama is responsible for lower gas prices then he must have been responsible when they were up to $3.60 etc. per gallon and he was just lying when he said he had no control. Am I correct TParty and Retired Army? $3.50 is the current lowest gas price I can find gas was under $2.00 when Bush left office so Obama is still responsible for a 57% increase in gas prices. Thanks Obama ummm ummm ummm

carcraft
25288
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carcraft 04/27/12 - 08:21 am
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Bizkit- Some people must have

Bizkit- Some people must have skipped school they day they taught logic! I skipped school the day they taught spelling and key boarding!

TParty
6003
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TParty 04/27/12 - 08:26 am
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Bizkit- I think we are trying

Bizkit- I think we are trying to say the same thing. I just wanted people who say it's Obama's fault for high gas prices to give him credit for lowering gas prices. Or- folks like myself who believe the President doesn't have much to do with them (doesn't blame or give credit) will just continue to say the speculators determine the cost.

Bizkit
30821
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Bizkit 04/27/12 - 08:27 am
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Hee,hee,hee.:)

Hee,hee,hee.:)

carcraft
25288
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carcraft 04/27/12 - 08:42 am
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TParty- The people buying oil

TParty- The people buying oil and oil products in India, China, and Iran (yes Iran, they produce oil but have no refining capacity) the US and Europe all contribute to the price of energy products. Instability in the Middle East contributes to countries stock piling and instability in the oil market. America has an abundance of energy, oil (we may have more oil than Saudi Arabia), natural gas, and coal. Obama wants to take coal out of the equation (to quote Obama, They may build a coal fired plant, but they will go bankrupt running it). Obama and the EPA have increased the difficulty in producing oil and natural gas in America, refusing to issue permits (despite a Judge’s order) and limiting production on public land. This just narrows the number of producers allowing speculators to make greater profits. Products that have reliable production and less fluctuation don't create near the profits for speculators. Why not increase America's energy production instead of hinder it?

faithson
5145
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faithson 04/27/12 - 08:59 am
3
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What's really upside down is

What's really upside down is that the 57% increase in gas prices goes directly into so few pockets... With our transportation infrastructure in need of so much repair you would think that we could at least be complaining about the increase in federal and state taxes to be used to 'keep up' all those roads and bridges. Naw... no new taxes, what a crock ! leave the capitalist speculators and their ilk to drain the pond and then only pay a meager 14% tax on their income. Soak the middle class at the expense of the privileged.

carcraft
25288
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carcraft 04/27/12 - 08:56 am
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faithson- Obama had a $800

faithson- Obama had a $800 billion dollar stimulus program to fix infrastruct full of shovel ready jobs, what happened to that. $800,000 to teach African men to wash themsleves. $11 million to cloth two people for job interviews, money to build wind mills in Spain and China. The energy department gave Fisker Motors $500 million dollars to produce cars in Finnland. Is that right side up to you?

TParty
6003
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TParty 04/27/12 - 08:59 am
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Oh carcraft... The United

Oh carcraft...

The United States of America does not have as much oil as Saudi Arabia.

Even Fox News say energy production for America has increased during Obama's administration (Because of actions taken during the Bush admin). U.S. has exported more oil-based fuels than it has imported for the first time in over 60 years. The demand for energy is also decreasing- (which is probably due to do everyone being broke, but lower demand is lower demand). The US Coal production has also increased- not gone bankrupt.

You can read this article if you want: http://www.bloomberg.com/news/2012-02-07/americans-gaining-energy-indepe...

faithson
5145
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faithson 04/27/12 - 09:09 am
4
2
Car; expenditures run both

Car; expenditures run both ways, you would be fooling yourself to believe it all rests with just the Democrats. WE need better accountability period. You think the stimulus was over the top, you would do well to check into the Military budget, talk about out of control spending with NO accountability, they admit they don't even KNOW where it is all going. Shall we also look into Home Land Security, the biggest growth in government in 60 years, by none other than... you guessed it... A REPUBLICAN PRESIDENT

justthefacts
21409
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justthefacts 04/27/12 - 10:09 am
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I believe President Obama, A

I believe President Obama, A DEMOCRAT, has increase spending on Home Land Security every year in office. Money well spent.

Cdr4500
20
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Cdr4500 04/27/12 - 11:28 am
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"Well, now the prices have
Unpublished

"Well, now the prices have gone down ten days in a row- anyone going to praise the President?"

LOL! Not here. Obama could find a cure for cancer and these people would still vilify him.

And what's with the "Obama's EPA" comments? Last I checked the EPA had been in place long before the Obama presidency.

justthefacts
21409
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justthefacts 04/27/12 - 11:42 am
3
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One thing for certain, if

One thing for certain, if they do find a cure for cancer. He'll take credit!!

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