President Obama looks into Oil Manipulation … Pure Political Theater

17 thoughts on “President Obama looks into Oil Manipulation … Pure Political Theater”

1. Some of the greatest companies in the world are American. They are run by some of the brightest minds.

   Just wish the Americans realize that a country can also be run on the same economic principles and wish them choose the right candidate (CEO) for the job (though both the top 2 contenders don't make me confident)

2. Call it an 'oil'igopoly and work from there...

   thanks

3. The oil market is a complicated and restricted economy. It also happens to be an essential commodity. Finding the equilibrium is not as easy as a basic supply/demand curve. To put this in perspective, while in fact global demand may be growing, the demand at my local gas pump may not.

4. Are there traders reading this anymore? Seems as if everyone wants to do political posturing.
   Speculators are legitimate buyers is my reply to someone that said oil sales should only go to 'legitimate' buyers.
   Speculators provide a valuable service of providing liquidity to markets which helps markets ... forget it. If i have to explain
   common sense free market principles, then it is not worth it.

   1. I agree. And it seems to me that A) not all speculators are bullish, and B) even if all speculators were bullish, every buy order (in the futures, for example) entails a commitment to sell at some time in the future to end their trade. This means that at best, speculators could only drive prices higher for relatively short periods of time. The net effect of speculation must be neutral for commodity prices in the long run.

5. I find it difficult to have oil rise to 125 whilst the EUR will drop to 1.25! These two trades will not go together. My bet is on oil because growth will keep demand strong and the FED will not let the USD rise against the EUR. Moreover, the FED is much more flexible and fast when pursuing dovish policies.

6. I find it intriguing that this administration has said it is going to change the "fundamentals" of the USA, which means, among many other serious issues, destroying the US currency (because, as it was said not long ago - you'll never have a global currency as long as the US dollar is strong...) So he wants to destroy the US dollar (per well documented Soros agenda) but he whines about the price of oil going up because that threatens his most precious commodity - his power to continue destroying the USA for another 4 years. Intriguing contradiction...

7. without a doubt ..for maintenance of wealth...and creation of further wealth...key market players manipulate key markets via all means possible...prices are not solely dependent on supply and demand

8. I donot agree with the above hypothesis.. The trading of oil is done here in US. India and China may purchase the oil but there is no longer the supply and demand that is the most predominant. It is speculation. Traders speculate drive the price up and sell their part to make profit. If somehow this speculation can be curbed i.e. by saying that if u puchase more than 5 million dollars worth of oil then u cannot sell it without some paperwork or that if u sell it then u lose some money. Then only legitamate people who want to use the oil will purchase it. All the speculators will be reduces to a much smaller number.. This will bring the oil price down.

9. But I thought the world did revolve around the 2009 Nobel Peace Prize winner?

   1. Don't forget the effect of pres. Obama's administration's depreciation of the purchasing power of the dollar!

      1. Get out of your bubble once in a while, foxbot. Congress is responsible for screwing the US credit rating.

      2. Not so sure I can put all the blame on this admin, the U.S. $1 George Washington Federal Reserve Note was created in 1913 and will now buy 8 cents of goods.

      3. Wait a minute, if one can hold down the price of oil, would that not be called "MANIPULATION"? We need to talk to Hillary more: she might provide more understanding. She traded very well I have heard. And wait a minute, can the powers that be just figure out what real supply and demand really is? Might they adopt a real supply and demand policy and let the traders trade?

         Scratching my head,

         JJ

   2. Unfortunately, for 8 years the world revolved around GW Bush, the President that destroyed America with his endless meaningless wars and tax breaks for the 1%. President Obama came into office in the middle of the Bush created crisis. Probably his worst decision was to allow Bereneke9(appointed by Bush) to continue as head of the Fed. Maybe he felt the need to preserve some continuity in the midst of the Bush crisis. All he's been able to do is to postpone the inevitable, the Bush Depression.

      1. @ Paul Browning. I could not agree with you more. Unfortunately our President inhereted a problem that no future president - democrat or republican - will ever be able to undo. I'd like to thank the Busg Administration and Republicans for destroying this country. And above all, I'd like to thank Mr. Hewison for his continued support and defense of that Republican legacy.

         1. If it wasn't for a republican there would not be any country to destroy.

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