View Full Version : Wall St. Running UP Gas & Food Prices

Gayle in MD
03-09-2011, 12:20 AM
What a SCAM!

Commod/Futures trading and speculation, running up prices, and the Lying Repiglicans, blaming Obama!

The Dodd/Frank Bill Expressly prohibits what they're doing! Excessive speculation, AGAIN!

This Must BE Stopped!

03-09-2011, 07:09 AM
Lost your tin foil cap again???


03-09-2011, 07:34 AM
The elevator stopped going to the top a long time ago.

Gayle in MD
03-09-2011, 10:44 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Fox News figures have dismissed concerns that speculators are helping to fuel increases in the cost of oil, instead using those higher costs to push for increased oil drilling. But speculators currently hold record bets on oil futures, and experts have said those bets are driving up the cost of oil.

AP: "Analysts Said Speculators Also Were Playing A Role" In Driving Up Oil Prices. The Associated Press reported on March 7:

Oil prices climbed to near $106 a barrel Monday as intense fighting between Libyan government forces and rebels appeared to be turning into a civil war and raised the prospect of a prolonged cut in crude exports from the OPEC nation.

By early afternoon in Europe, benchmark crude for April delivery was up $2.25 to $106.67 a barrel, the highest since September 2008, in electronic trading on the New York Mercantile Exchange. The contract had gained $2.51 to settle at $104.42 a barrel on Friday.


While the fear of supply disruptions was usually mentioned as the key factor for higher oil prices, analysts said speculators also were playing a role.

The large trading volumes tied to speculative investments had helped boost market transparency and liquidity, Commerzbank said.

"Things become critical, though, when speculators become the main driving force behind prices and, as we see it, this is the case at the moment on the energy markets," the German bank said. [AP, 3/7/11]

McClatchy: "Wall Street Speculators Are Driving Up Oil And Gasoline Prices Again." McClatchy reported that speculators were "driving up oil and gasoline prices" in December 2010:

Despite weak demand in the U.S. and Europe, oil prices climbed this week to near $90 a barrel and gasoline prices have passed $3 a gallon on the West Coast and parts of the Northeast.

Why? If demand is down and supplies are plentiful -- and they are -- why would prices be going up?

Because Wall Street speculators are driving up oil and gasoline prices again -- just in time to dampen holiday cheer. [McClatchy Newspapers, 12/8/10]

Sydney Morning Herald: "Hedge Funds Raised Bullish Oil Bets ... Driving Crude To $US100 A Barrel." The Sydney Morning Herald [Au] reported on March 1:

Hedge funds raised bullish oil bets to a record as violent clashes in Libya curbed output from Africa's third-largest producer, driving crude to $US100 a barrel for the first time in more than two years.

The funds and other large speculators increased net-long positions, or wagers on rising prices, by 30 percent in the seven days ended February 22 to 240,572 futures and options combined, the highest in records dating back to June 2006, according to the Commodity Futures Trading Commission's weekly Commitments of Traders report.

Oil in New York surged to a 29-month high of $US103.41 a barrel on February 24 as Libyan leader Muammar Qaddafi vowed to crush an uprising that threatens his 42-year rule. Protests were ignited by the ouster of Tunisia's president last month and fanned by the February 11 fall of Egyptian President Hosni Mubarak. [Sydney Morning Herald, 3/1/11]

In Fact, Speculators Reportedly Hold "Extraordinary" Amounts Of Oil Futures
Energy Market Analyst: "It Does Not Get Any Clearer Which Way Wall Street Is Trying To Take Oil." According to CNN's Street Sweep blog:

Large noncommercial speculators -- firms that play the futures markets without taking delivery -- added to their long position in West Texas Intermediate crude by 50,200 contracts last week, according to Commodity Futures Trading Commission data.

The surge of speculative money into the oil futures pits shows that big financial players are expecting the price of WTI crude to surge well above the recent $105 or so seen last week. If they are right, it will bring $4 gasoline a step closer.

That will not be good news for most consumers, though it could help some big energy traders score big paydays, thank goodness. You would hate to see the talent fail to get its due.

"It does not get any clearer which way Wall Street is trying to take oil," says Stephen Schork, who writes the Schork Report energy markets newsletter in Villanova, Pa.

Schork notes that speculators now own nearly six times as many barrels of oil -- 268,622 futures contracts representing nearly 269 million barrels -- as can be stored at the WTI trading hub in Cushing, Okla. And since the CFTC numbers released Friday only go through last Tuesday, they likely underestimate the degree of speculative fervor building in the energy markets.

Olivier Jakob, who covers energy markets for Petromatrix in Zug, Switzerland, estimates that traders added 40,000 to 50,000 crude contracts to their long positions in the second half of last week. That would take them up to seven times the Cushing capacity, a level he calls "extraordinary."

<span style='font-size: 14pt'>The speculative fervor is so remarkable that the big trading firms now have nearly twice as many long contracts open as they did in 2008, when oil spiked to $147 in the summer, a development that either foreshadowed or caused the global economic meltdown, depending on how you look at it. </span>[CNN.com, 3/7/11]

03-09-2011, 01:34 PM