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Thread: The end of OPEC?

  1. #11
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    Quote Originally Posted by Sheldon View Post
    Oil speculation is a real bad idea, you in essence create a middle man, it's kind of like adding bureaucracy to the government.

    Just imagine if ammo were sold to a commodities broker first what kind of mess it would be. Some bozo buys the future production of Winchester the store shelf are full and the stuff is on sale for $12.00 a box, then Winchester has a labor contract coming up and the says white box should be worth $35.00 a box due to possible supply issues, so when they sell the ammo in the store they get to pay his price if they want any more, golly wouldn't that be fun? Yes that is a simplified annology

    Oil is no different, it is placed on a commodities market, they pump it, then the price of the commodities is driven my people that listen to rumors, and bid upon those fallacy's.

    Years ago oil was not a commodity, supplies flowed to the refineries without a problem, prices were very reasonable, there were no problems and then they made it a commodity, sugar, coca co, beans, corn are fine examples of a commodity but not oil.

    Commodities are funds used to raise capital on something you do not have yet and the oil Rich countries need the extra cash like I need to weigh 50 more pounds. I repeat it should not be a commodity and any who drive the cost are **********
    Have you noticed that speculation increases when the price of oil goes up and decreases when it goes down? Think about it; if speculators controlled oil prices, wouldn't they do what's best for their pocketbooks and keep bidding the price up? Think about it.

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  3. #12
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    Quote Originally Posted by tattedupboy View Post
    Have you noticed that speculation increases when the price of oil goes up and decreases when it goes down? Think about it; if speculators controlled oil prices, wouldn't they do what's best for their pocketbooks and keep bidding the price up? Think about it.
    Yeah it is called fear factor, just as it can go up on a rumor it can go down, they are fueled by rumors, heck when it was news that there was a possible strike at a British owned oil Field it shot up close to ten bucks, and all it took was Bush to make one announcement to start the ball rolling. They are not in the business of loosing money so they back off. I reiterate it is a real bad idea to let a third party influence the price of crude.

    OPEC uses them like a puppet on a string to increase profits, these bozos are already so rich that they treat $1000.000.00 like U N I do a dollar.

    Put oil back on the world market and let your law of supply and demand regulate the price and not a commodities broker!
    Last edited by Sheldon; 09-15-2008 at 11:25 AM.

  4. #13
    Quote Originally Posted by tattedupboy View Post
    Have you ever thought that rather than the price of oil being caused by speculation, that instead the increase in speculation is caused by the increase in the price of oil? That's what's happening. Just like I said before, to believe that speculation caused oil prices to increase is like believing that thermometers are to blame for temperatures that are too hot or too cold. Speculators respond to the market, but they don't control oil prices.
    The speculators DID case the price of gas to be what it is today.

    Every time the wind blew, or someone farted, the price went up... omg, IRAQ doesn't like us... gas went up .20 cents.... OMG a hurricane would wipe out such and such... gas went up .20 cents per gallon..

    Yeah the speculators caused it for sure... just like in the 1970's during the "SHORTAGE" that never happend and never was.... yeah... we've all been ripped off...

    They should all be fired........ the govt should have done something long ago... but also the oil industry greases the government's hands... (not just Bush) it's all of them...
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  5. #14
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    Supply and demand, supply and demand, supply and demand. You people are starting to sound like the liberals we love to ridicule.

  6. #15
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    Quote Originally Posted by tattedupboy View Post
    Supply and demand, supply and demand, supply and demand. You people are starting to sound like the liberals we love to ridicule.
    Actually you need to study the commodities market, Have you ever bought a commoditie? I have Sugar, coco, n palladium, the market is driven by rumor, future availability, and demand but the investors determine the price, if I do not buy your commodity or place a "put" on it the the price will decrease, however if I just say "buy" then the sky is the limit and that is the oil commodities market son...

  7. #16
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    Quote Originally Posted by Sheldon View Post
    Actually you need to study the commodities market, Have you ever bought a commoditie? I have Sugar, coco, n palladium, the market is driven by rumor, future availability, and demand but the investors determine the price, if I do not buy your commodity or place a "put" on it the the price will decrease, however if I just say "buy" then the sky is the limit and that is the oil commodities market son...
    Sounds like supply and demand to me. All these factors you mention influence how much of the commodity buyers are willing to buy and sellers are willing to produce. All you're doing is proving my point even more and more.

  8. #17
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    Quote Originally Posted by tattedupboy View Post
    Sounds like supply and demand to me. All these factors you mention influence how much of the commodity buyers are willing to buy and sellers are willing to produce. All you're doing is proving my point even more and more.
    Now I am confused just what does rumors and future Availability have to do with current supply and demand, Future availability of coco or sugar have more to do with the weather, than the whims of some Oil Sheik, or OPEC, your argument is hollow.

  9. #18
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    Quote Originally Posted by Sheldon View Post
    Now I am confused just what does rumors and future Availability have to do with current supply and demand, Future availability of coco or sugar have more to do with the weather, than the whims of some Oil Sheik, or OPEC, your argument is hollow.
    I'll be happy to tell you what future availability has to do with current supply and demand. When people are uncertain about future availability, they tend to buy more of it now (a phenomenon known as panic buying), and because that decreases short term supply, prices go up. That's the case for any commodity, not just oil, sugar, or cocoa.

  10. #19
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    Quote Originally Posted by tattedupboy View Post
    I'll be happy to tell you what future availability has to do with current supply and demand. When people are uncertain about future availability, they tend to buy more of it now (a phenomenon known as panic buying), and because that decreases short term supply, prices go up. That's the case for any commodity, not just oil, sugar, or cocoa.
    Son You keep looking but not reading there is no panic buy of oil. Refineries buy what they need from a broker which in turn buys it from a middle man.

    Supplies are regulated by the guy that owns the well. Supplies vary only by the expansion of world demand, which they track very closely. Which in turn can also be figured out by any fifth grader, the baseline price is set by the supplier. When it goes on a commodities market and all bets are off as to how much it can hit.

    Further demand is finite you can only put so much in a gas tank before it overflows, and yes this can be figured for as well. When every aspect of the product from ground to pump is controlled how can it be a commodities?

    Granted I am no business expert but in the business wold the more hands you have in the pot the more the soup will cost, this is a given!

    We cannot control how much of a true commodities will be available any more than we can control the weather. If you believe otherwise then shame on your teacher You are a truly brainwashed individual.
    Last edited by Sheldon; 09-18-2008 at 10:36 AM.

  11. #20
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    Quote Originally Posted by Sheldon View Post
    Son You keep looking but not reading there is no panic buy of oil. Refineries buy what they need from a broker which in turn buys it from a middle man.

    Supplies are regulated by the guy that owns the well. Supplies vary only by the expansion of world demand, which they track very closely. Which in turn can also be figured out by any fifth grader, the baseline price is set by the supplier. When it goes on a commodities market and all bets are off as to how much it can hit.

    Further demand is finite you can only put so much in a gas tank before it overflows, and yes this can be figured for as well. When every aspect of the product from ground to pump is controlled how can it be a commodities?

    Granted I am no business expert but in the business wold the more hands you have in the pot the more the soup will cost, this is a given!

    We cannot control how much of a true commodities will be available any more than we can control the weather. If you believe otherwise then shame on your teacher You are a truly brainwashed individual.
    Yes there is. Oil is no different from any other commodity, and when something is expected to disrupt supplies, people rush to buy more of it in the near term so that they can be sure that they'll have it before it runs out. Everything I say is absolutely true. Just take a moment to study economics and you'll see that.

    And as for your argument that we cannot control how much of a commodity will be available, that's also not true. OPEC is a cartel, and if it cuts production (assuming none of its members cheats), world oil prices will go up; that's a given. How much suppliers are willing to supply depends on the price; the higher the price, the more they're going to want to produce, because the more money they'll make. The lower the price, the less they're going to want to produce because they're going to want to wait for prices to go up before they produce more.

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