Xman00 wrote:
Grey Ghost wrote:
yea,thank you Obama for the fuel prices.....never ever seen prices this high!
70% of all future oil contracts are now being bought and sold by some sort of investor ( hedge funds, retirement, Insurance co., Mutual funds etc ) who has NO physical connection to oil and will never be able to actual accept or deliver the oil in the contract - basic idea behind the contracts in a simplistic explanation. Oil has become a way to make money very fast, and in huge amounts, that is until the next crash, that moves us back to the year 1886
( Dan Rather reports in a interview with 2 oil future contacts dealers, one pro one anti )
And the Saudis ( who benefit form the higher price ) claim oil is selling for $10-20 above what is should be. Those guys claimed and have wanted $80-90 a barrel
( again several news papers articles over the last few weeks)
I seem to remember GW saying his hands were tied back in 2006 on up when oil prices rose. Good explanation. Read the following article in MSN Money:
http://money.msn.com/exchange-traded-fu ... 4c&_nwpt=1The interviewee states that after the crash and the investors stepped to the sidelines, oil dropped to $32/barrel, the price that those buying futures contracts and actually using the product would pay if investors and speculators weren't allowed in. I ran the article by an acquaintance who worked as an investment banker for Lehman Brothers and he agreed, but said he thought the true price is around $50-60 barrell. He called a former associate as Smith Barney this morning, and said the guy thinks it's going to start dropping within two weeks and advised waiting 30 days to book a flight if I can.
So I'll see what happens.
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