I don't want here your speculators set the prices bs -- we all know that Enron owned enough speculators and had influence over others to move the price when wanted. Do you think the price of oil going low is scam so big oil can continue to hold their monopoly?
No. With the Democratic interest in windfall profits tax and Congressional investigations into the impacts of the Commodity Futures Modernization Act, the speculators and producers that saw quite fantastic profits for several years decided it was time to loosen the noose.... kind of a like a child with his hand in the cookie jar hearing his mother come down the stairs.
The CFMA, passed by the Republican House and Senate in 2000 WITHOUT ANY DEBATE, created a separate trading board that did not have regulation under the Commodity Futures Trading Commission. This was strongly advocated by the now bankrupt Enron as a method and means to manipulate energy prices. As a result, tremendous volatility was introduced into the market, which allowed prices to spiral upwards for several years due to a self-fulfilling cycle of greater profits and concerns about punditry beating the drum of $5/gallon gas and $200 per barrel oil.
Perhaps coincidentally, the maximum price in oil occurred: at the same point where the maximum volume occurred in this non-regulated board; and it was the point when trading on the non-regulated board surpassed the trading on the CFTC regulated board.
The so-called ';Enron Loophole'; was closed in June 2008 with the passage of the Food, Conservation, and Energy Act of 2008. This bill was passed by Congress, vetoed by President Bush, and then over-ridden by Congress. The bill received Republican support because the writing was on the wall that several of the deregulations pushed through in 2000 and 2001 were causing serious problems in the US economy... and they wanted to get re-elected (my take). The Bill went into effect in mid-July 2008 and since that point, gas prices have dropped over $1.90 per gallon.
Issues about inventory and supply were a red herring. The arguments about supply/demand had a nugget of truth but were widely false. Yes demand was very high, but questions about the reason for high prices became louder as petroleum reserves kept growing.Do you think the price of oil going low is scam so big oil can continue to hold their monopoly?
They don't want to lose their customers, so they are doing what they need to do to keep people addicted. They want to encourage people to keep their gas guzzlers and buy more gas guzzlers. The one thing we can be certain of is that the price will go up.
I thought the interview on 60 Minutes the other night was pretty interesting. Oil has been the cause of nearly every war and the source of wealth for the wealthiest. They aren't going to give up a dime. The last thing they want is for alternative sources to be developed. Take away the focus on price and the people forget.
What monopoly?
The fuel industry is one of the most fragmented industries there is.
Prices are set on the commodities exchanges. The volatility is not the result of conspiracy but of volatile credit policy. When the Fed increases the supply of money and credit, the price of credit-driven assets goes up disproportionately to economic factors. That is why when the Fed cut rates after 9/11, the housing and commodities increased disproportionately to increasing demand.
Hate ';Big Oil'; all you want - but do you also hate ';Big Copper'; and ';Big'; any other asset that is bought on credit? There's no OPEC in copper - why did copper prices do the same thing? Ditto for steel, gold, platinum, palladium....
No, the price of oil is dropping because the demand for it has also dropped. When it becomes harder to sell something the price goes down in order to reverse that trend and that's what's happening with oil. the big oil companies were loving the high prices as were small oil operators. The real reason there isn't any alternative fuel available is because there isn't anyone smart enough to figure out a good one. If it was going to happen somebody in Europe would have done so by now, $4/ gallon for gas is a bargain for them.
most of your so called monopoly is outside the united states and i doubt enron would raise the cost of them buying oil or natural gas which just takes they money out of there pockets and makes for a smaller profit margin you have to remember that the big numbers you see per quarter that your so called big oil companies are making isn't a spit in the bucket to what they are spending and no other company in the united states would or could work for as low of profit margin as oil companies get.. when people spend a trillion dollars a month on buying gas there is a profit ,just not a huge one
Maybe, but I think it has more to do with how the oil companies screwed themselves.
They sent the price of oil way too high, and now there is no demand. Now even as they drop it to re-attract demand, everyone is still afraid it will shoot up again and are still not raising demand.
They screwed themselves, and soon will be in the tank with the rest of us.
yeah you know it all, without you the rest of the world would have no clue, thanks for spreading the word
btw did you know that so called ';big oil'; is 4% of the worlds oil suppliers, shell is dutch, citgo is Venezuelan etc..., and theres a big market out side of america, so big oil can't control the prices of the barrel on the stock exchange. you should spend 2 minutes doing a little research once in a while before you expose these scams.
Yes, this is Bush and Cheney jerking around Hopers. Price will soar in a few months to about $300/barrel.
The 40% unemployment and 35% poverty rates will build character and make the US more equal with Africa.
By the way... Harvard and Yale ran up the price of oil. They own $12 BILLION worth of oil they bought over the past few years.
No. I think oil is low right now because it's winter time. I think it will shoot up again to 4 dollars a barrel. What I'm worried about is how people in Texas are going to react after that happens. I see everyone here buying gas-guzzling SUV's and big pick-up trucks again.
It's not necessarily a scam but the point of it for the oil companies is that they want to take away our worries of finding alternative energies. It's basically to distract us from thinking that alternative energies are that important.
No, I don't think so. Enjoy it while you can cuz on December 17 the oil ministers are going to get together and cut production by a lot and you know what that's going to do to the price of oil. Think about it!
I wouldn't call it a scam but I know Saudi Arabia is looking to increase its supply of available oil and production in an effort to slow research into alternative power..
You people kill me, if oyu don't want a monop[oly then get an alternative fuel, if you don't have that then there will always be a monopoly....it's self diffinitioin....duh!
What ever happened to the conservative standard statement Economics 101
law of supply and demand?
No, the rise in oil was a plot to embarrass the Bush admin.
I don'ta know, thatsa interesting.
why don't we ask the head honchos OPEC
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