Bailout Banks hoarding Crude Oil (Again)

[MeatPounder]

Speculative bubble?
Yes some of it was that, a lot of it (the majority) was all the messes in the middle east, a good portion was a huge increase in demand due to US wasteful over consumption and huge increased demand from emerging markets (primarily china and india), to a minor degree all the turmoil with supply from Africa and manipulation from mid level producers such as chavez and putin, and of course good old fashion gouging by big oil with a very very friendly administration.....the moon not only aligned with mars, but jupiter, venus, and saturn as well.

[kenny]

Originally Posted by MeatPounder

Speculative bubble?
Yes some of it was that, a lot of it (the majority) was all the messes in the middle east, a good portion was a huge increase in demand due to US wasteful over consumption and huge increased demand from emerging markets (primarily china and india), to a minor degree all the turmoil with supply from Africa and manipulation from mid level producers such as chavez and putin, and of course good old fashion gouging by big oil with a very very friendly administration.....the moon not only aligned with mars, but jupiter, venus, and saturn as well.

I'm sure the fact that 70% of the money in oil futures was speculative didn't play a role..

In fact it has already been proven that the dramatic drop in oil prices coincides with a large withdraw of speculative positions.

I'll further address this matter with facts at a later time prehaps tomorrow. Right now I'm in a hurry.

[Toby]

Originally Posted by MeatPounder

...a good portion was a huge increase in demand due to US wasteful over consumption and huge increased demand from emerging markets...

Actually, that's not correct. During the 18 month period up to last August crude oil prices increased from about $55/barrel to over $130/barrel. During that same time period world demand actually dropped slightly while supply increased slightly.