6 Myths About Oil Speculators

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Get your head out of the sand, Rick. There is plenty of supply, and the prices go way up, anyway. Supply vs demand doesn't work anymore. Speculators are killing our entire economy, with higher oil prices, that in turn translate to20% higher food costs, and much of anything else.

Bonnie of FL 10:20PM March 01, 2011

We are becoming a Corpocracy! Believe me this is all bs!

Rich of NY 12:29AM February 27, 2011

We're comparing the stock market along with the housing markets to oil, which neither one are nearly as fluid as oil speculation. The bubble takes place when there is no other direction than to "burst" and deflate. That is not the casein oil

Mike of Houston of TX 5:02AM October 05, 2009

If they want to speculate, then they should take the full risk by investing 100% of the value of their position and take possession of the oil. This will show they are committed.
My bet is they will not speculate anymore if margins were eliminated.
Bob

Bob Diamond of MI 12:30PM July 09, 2009

i actually did not really know what the heck speculation technically was.i knew it was a stock market type of dealing,but thats it.and the having to invest 50% at least in your oil deal makes sense if it works in regular stock purchases,ect.reminds me of buying stocks on credit previous to the crash of 29.i live in california and see the results of a bunch of people writing what i call "cheater" loans on real estate.if they would have been held to the standard fha rules as i understand it,[with 5 or 3 % down mandatory,ect]none of this stuff would have happened.housing would have stayed stable and affordable for regular working folks.i know i'm comparing two different things,but to me it sounds kind of like the same problem with the pricing of oil too.

scott wyman of CA 11:38PM June 10, 2009

Mr. Newman,
Obviously speculators follow market fundamentals and obviously they serve a purpose in the market for other investors, otherwise their existence would be illogical. That is not the argument against them.
Unregulated speculation in any form drives up prices and always leads to economic turmoil. Land speculation in the 1800's for instance often led to a bubble in homestead prices and a collapse of the local economies when farmers could not pay their debts. That's why its regulated today.
Oil futures are not currently properly regulated. People that want regulation are not "witch hunters." A bubble in fact quite possible as well. If oil prices were to rise to 100 a barrel again before the world economy recovers, it will likely kill the recovery and oil prices will deflate. This fear is held by many respected economists. What is your definition of a bubble?

Julia of NC 1:33PM June 10, 2009

Is it just me or does any one else thinkt that most of the people commenting here must not be native speakers of english?
I cannot understand what the majority are trying to say. Between the incomplete thoughts and jumbled grammar I am at a loss. Why do you even bother.

W.T. P. Sanders of MA 2:36PM June 02, 2009

Before 60 Minutes was aired, I saw the media on TV interview some experts, she or he quote, because of "Demand and Supply", I kept wondering at that time how could the whole country OK with that answer, no protest or anything? ( I saw some here and there but not a big group, this kind of insult the mentality of the citizen here, I never believed in that). At that time, I thought that the oil company bought everybody already.
60 Minutes has an heroic action to air this fact on TV against those parties that will benefit if oil price is up such as those companies (before melt down) who attempted to make profit from oil speculating or hedging in a big pool and some greedy investors.
Regardless of what you did in the oil market, please leave the rice commodity alone, I believe the same evil thing drives the price up twice as much, and it hasn't come down back to the way it was ever since which makes it very difficult for lower income people all over the world.

Pamela of LA of CA 11:13AM April 18, 2009

Yes, please comment now that oil is 100 dollars less than last year. Explain that one, ha ha.

Joe Olstad 3:58PM April 09, 2009

When in the hell is congress going to get off their behinds and regulate oil with the amount cash required to purchase these contracts as when I buy stocks?That would certainly curb the amount of speculation but as usual big oil lobbies control the Congress just as in other industries. We need to fire the whole damn congress and start over. This is just one example how corrupt our government is and unless it changes we are headed for a major depression in the very near future.

rgc of GA 4:07PM March 12, 2009