JP Hochbaum
DP Veteran
- Joined
- Feb 7, 2012
- Messages
- 4,456
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"What is now happening is the end game: an orchestrated wave of noise that is drawing in speculative money. This is enabling the producers who are actually in the know to hedge by selling production forward during what they confidently expect will be a temporary – and pre-planned – managed fall in the oil price.
But the US has been quite happy to let the EU – as useful idiots – take the economic hit. The high oil prices caused by all this noise and nonsense are actually a net benefit to Iran – which rattles its sabre loudly as elections approach.
The effect of a managed decline in oil prices to, and probably over-correcting well through, $60 a barrel – which is coming fairly soon – will be extremely beneficial to the US in two ways."
Chris Cook: The Oil End Game « naked capitalism
WHO is Chris Cook again?
And why doesn't he know what lift costs are in the US and Canada?
The info is somewhat dense for an average guy like me, and the comments section are similarly peppered with pro and con positions of people with economics educations far in excess of mine. Anybody smart that could dumb it down for a guy like me?
Good site, it makes some valid points and this wouldn't be the first huge yo yo in oil prices. I would however prefer oil drops AFTER obama is defeated due in part to high gas prices.
So you don't mind if people suffer for your political desires. Gotcha.
A little pain now beats alot of pain later, Obama will drag us over a cliff and if we need to pay some high gas prices to get him to jump off the cliff alone, so be it.
Good site, it makes some valid points and this wouldn't be the first huge yo yo in oil prices. I would however prefer oil drops AFTER obama is defeated due in part to high gas prices.
Agreed.
It would be a huge mistake for the oil executives to drop oil prices prior to election day.
I have long said the republican minded people would run the country into the ground if that meant getting Obama out of office. It would surprise me none to see the big oil fat cats hold us hostage for their political gains.
If we ever see $60 a barrel again, it will be because demand has crashed and the economy is cratering again.
People b**** about the oil companies and speculators all the time, but it is actually OPEC that is the biggest factor in determining the price of oil.
The oil markets are completely manipulated and orchestrated, and the conductors of the orchestra have the benefit of having already held a rehearsal in 2008.
Not true. OPEC is completely meeting demand. What else do you expect them to do?
You could ask him directly in that blog. Also it says who he is in the blog.
"What is now happening is the end game: an orchestrated wave of noise that is drawing in speculative money. This is enabling the producers who are actually in the know to hedge by selling production forward during what they confidently expect will be a temporary – and pre-planned – managed fall in the oil price.
But the US has been quite happy to let the EU – as useful idiots – take the economic hit. The high oil prices caused by all this noise and nonsense are actually a net benefit to Iran – which rattles its sabre loudly as elections approach.
The effect of a managed decline in oil prices to, and probably over-correcting well through, $60 a barrel – which is coming fairly soon – will be extremely beneficial to the US in two ways."
Chris Cook: The Oil End Game « naked capitalism
OPEC is meeting demand at the current market price. If they were to increase production, it would lower the price of oil, and more would be consumed.
As a cartel, I expect them to restrict production just enough to drive up prices so that they can maximize their profit, without sending prices so high that we are encouraged to switch to alternative sources of energy.
And that's exactly what they do.
If you had the slightest clue about anything oil related, you would know that the "big oil fat cats" do not set the price of oil.
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