Lets Get to Know McCain.

[darthtang aw]

Originally Posted by stdreb27
http:///forum/post/2650064
McCain is a moron. So now he is talking about making us drill again. Which is fine, except, two days ago he was saying how speculators were driving up the price of oil. there is just no continuity with his message.
He is partially right on the speculators. As long as we do not start any new drilling projects of major significance the speculators can safely invest in crude driving up the price as oil is becoming a highly sought after resource. If the U.S. would start drilling the market would have more resources just like say we found a huge supply of gold ore. The price would come down as the supply would increase.
But ultimately it comes down to that there is not enough current supple to meet the demand.

 

[reefraff]

Originally Posted by stdreb27
http:///forum/post/2650064
McCain is a moron. So now he is talking about making us drill again. Which is fine, except, two days ago he was saying how speculators were driving up the price of oil. there is just no continuity with his message.
Wait a minute, you can't grasp the concept that speculators can't exploit high demand if additional supply comes into play?

 

[stdreb27]

Originally Posted by Darthtang AW
http:///forum/post/2650141
He is partially right on the speculators. As long as we do not start any new drilling projects of major significance the speculators can safely invest in crude driving up the price as oil is becoming a highly sought after resource. If the U.S. would start drilling the market would have more resources just like say we found a huge supply of gold ore. The price would come down as the supply would increase.
But ultimately it comes down to that there is not enough current supple to meet the demand.
in the sense that they pay the higher prices. I guess maybe, but usually speculators pay less than high market rates or more than lows. Depending on how they made their puchase.

 

[reefraff]

They are bidding on futures contracts. They can and will get burned at some point when the price falls. Just a matter if if their profits will be more than the losses.
Thing is that in addition to pure speculators there are now pension funds, hedge funds etc. investing in oil futures too. The number of contracts on one exchange has doubled since 2003.