Everything Obama does is political, Why release Oil reserves now?

[JRK]

Rabbi the biggest problem this country faces is people who have no idea how this works

Fuel cost are a driving force in what things in this country cost, but it is not the reason we have 10% UE
that has much to do with we have no sector to replace the housing market
Like the extraction of shale oil
the delivery of
the refinement of
the sale of the product

Thats a place to start

That includes the President and all of his advisors. They think telling people to start hiring will create jobs. None of them has worked at a productive job a day in his life.

The issue is:
1) Let banks foreclose and clear the housing market.
2) Repeal Dodd-Frank and allow banks to lend money again
3) Raise interest rates to 1% and eliminate asett bubbles
4) Replace the hodge podge of temporary tax breaks with a streamlined simplified tax code people can udnerstand.
5) Implement tort reform.

1)clean it up, replace it until it returns, I agree
2) I agree
3) 2% even
4) fair tax maybe
5) today

 

[thereisnospoon]

I'm a trader.

Ban the trading of oil, except by those who have a legit. need to hedge..........and guess what would happen?

$30 oil within 30 days. Oil is manipulated by the biggest of the big.

don't believe me? Consider this- oil went from (about) $30 to $146 to $25 to $110......in 24 months. MEANWHILE, there was NEVER a shortage, ever, at any time....NEVER. Do the math. Some BIG "entities" are pocketing hundreds of billions $$$. That $$$$$$ is coming all consumers. It's a hidden tax.

During the spike to $147 i saw a report on CNBC that told of the massive increase in the raw amount of dollars in the oil markets. The numbers are shocking. In the early 2000's roughly $13 billion was in play in the petroleum and gasoline futures markets. In the later part of the decade, as much as $300 billion in the market.
The report went on to state that the many hedge funds, pension funds, investment banks and other financial institutions are literally bombarding the market which creates the volatility.
Now, I think there should be more regulations to curb price spikes, in either direction. I also think there should be rules to discourage quick buck artists and day traders.
Their margins should be dramatically increased to insure they are in the market for legitimate reasons.
Another thing to be regulated is trades that obviously are in violation of market fundamentals. In other words trades that are outside the laws of supply and demand should be rejected.

 

[thereisnospoon]

I'm a trader.

Ban the trading of oil, except by those who have a legit. need to hedge..........and guess what would happen?

$30 oil within 30 days. Oil is manipulated by the biggest of the big.

don't believe me? Consider this- oil went from (about) $30 to $146 to $25 to $110......in 24 months. MEANWHILE, there was NEVER a shortage, ever, at any time....NEVER. Do the math. Some BIG "entities" are pocketing hundreds of billions $$$. That $$$$$$ is coming all consumers. It's a hidden tax.

BTW, banning trading on a fair and open marketplace would result in the prices having to be fixed. Who would you recommend do the fixing?..The federal government? Oil companies?
Look, when prices are fixed and this cannot ebb and flow with supply and demand, rationing is inevitable.

 

[JRK]

I'm a trader.

Ban the trading of oil, except by those who have a legit. need to hedge..........and guess what would happen?

$30 oil within 30 days. Oil is manipulated by the biggest of the big.

don't believe me? Consider this- oil went from (about) $30 to $146 to $25 to $110......in 24 months. MEANWHILE, there was NEVER a shortage, ever, at any time....NEVER. Do the math. Some BIG "entities" are pocketing hundreds of billions $$$. That $$$$$$ is coming all consumers. It's a hidden tax.

BTW, banning trading on a fair and open marketplace would result in the prices having to be fixed. Who would you recommend do the fixing?..The federal government? Oil companies?
Look, when prices are fixed and this cannot ebb and flow with supply and demand, rationing is inevitable.

You and I are on the same page. I made the same response
I never want to question a man, but trading oil futures makes as much sense as trading Google. Difference is Google does not fuel the economy
point being Goggle was 640 a share 3 months ago
they report earnings, great 1/4, I even think they exceeded predictions
It was 470 a share last week

Google
a 5 star, point is oil is no different except we fuel our economy with it

 

[JRK]

I'm a trader.

Ban the trading of oil, except by those who have a legit. need to hedge..........and guess what would happen?

$30 oil within 30 days. Oil is manipulated by the biggest of the big.

don't believe me? Consider this- oil went from (about) $30 to $146 to $25 to $110......in 24 months. MEANWHILE, there was NEVER a shortage, ever, at any time....NEVER. Do the math. Some BIG "entities" are pocketing hundreds of billions $$$. That $$$$$$ is coming all consumers. It's a hidden tax.

BTW, banning trading on a fair and open marketplace would result in the prices having to be fixed. Who would you recommend do the fixing?..The federal government? Oil companies?
Look, when prices are fixed and this cannot ebb and flow with supply and demand, rationing is inevitable.

You and I are on the same page. I made the same response
I never want to question a man, but trading oil futures makes as much sense as trading Google. Difference is Google does not fuel the economy
point being Goggle was 640 a share 3 months ago
they report earnings, great 1/4, I even think they exceeded predictions
It was 470 a share last week

Google
a 5 star, point is oil is no different except we fuel our economy with it

 

[editec]

I do wonder what the effect on the futures market of oil would be if WORLDWIDE one had to be a REAL player in the oil business to buy or sell futures.

I suspect that the effect would be far less fluxuation in the price of oil and I alsoo suspect that the worldwide price of oil would be far less than it currently is, too.

Again, I suspect these things, I do NOT claim to know that is true.

 

[The Rabbi]

I do wonder what the effect on the futures market of oil would be if WORLDWIDE one had to be a REAL player in the oil business to buy or sell futures.

I suspect that the effect would be far less fluxuation in the price of oil and I alsoo suspect that the worldwide price of oil would be far less than it currently is, too.

Again, I suspect these things, I do NOT claim to know that is true.

Good because it is not.
Imagine having a market consisting of 10 players. How easy would it be for 6 of them to collude to raising prices? Or lowering them at will?
It's a shitty idea by someone who doesnt have a clue what he's talking about.

 

[JRK]

The price of fuel is the least of our worries
If your making 500.00 a week and you spend 20.00 a week one then 35 the next, then its aggravating
If you are making 0.00 a week ( do not have a job) and, well it really does not matter what the price of gas is
let me add that 500 a week is not great
but its a hell of allot better than 0.000

ITS ABOUT THE ECONOMY OBAMA

 

[thereisnospoon]

I do wonder what the effect on the futures market of oil would be if WORLDWIDE one had to be a REAL player in the oil business to buy or sell futures.

I suspect that the effect would be far less fluxuation in the price of oil and I alsoo suspect that the worldwide price of oil would be far less than it currently is, too.

Again, I suspect these things, I do NOT claim to know that is true.

The volatility in the oil and gasoline futures markets comes from the sheer amount of dollars in the market. Other issues are nearly instant trades via electronic means. There is no time to pause. Trades are made on the button.
Billions of dollars in trades are made in a single day. Heck a hedge fund may position one way at the opening bell and go 180 degrees later that hour.
Any news that may appear to have an effect on supply is now magnified.
The best example is last week's announcement of a 60 million barrel release from the Strategic Petroleum Reserve. The July contract for West Texas Light Sweet Crude fell 5% in less than two hours. The price settled at about $90.75. The market has gained all that back and then some. Oil closed yesterday at $95.42..Gas had fallen from right around $3.00 ( wholesale) to $2.77 that same day. Today Gasoline is trading at $2.92 per gallon.
This is an example of volatility that has nothing to do with supply and demand. That 60 million barrels represented about 2.5 days of US consumption. There's no way there should ever have been such downward price spike on the commodities market.

 

[JRK]

I do wonder what the effect on the futures market of oil would be if WORLDWIDE one had to be a REAL player in the oil business to buy or sell futures.

I suspect that the effect would be far less fluxuation in the price of oil and I alsoo suspect that the worldwide price of oil would be far less than it currently is, too.

Again, I suspect these things, I do NOT claim to know that is true.

The volatility in the oil and gasoline futures markets comes from the sheer amount of dollars in the market. Other issues are nearly instant trades via electronic means. There is no time to pause. Trades are made on the button.
Billions of dollars in trades are made in a single day. Heck a hedge fund may position one way at the opening bell and go 180 degrees later that hour.
Any news that may appear to have an effect on supply is now magnified.
The best example is last week's announcement of a 60 million barrel release from the Strategic Petroleum Reserve. The July contract for West Texas Light Sweet Crude fell 5% in less than two hours. The price settled at about $90.75. The market has gained all that back and then some. Oil closed yesterday at $95.42..Gas had fallen from right around $3.00 ( wholesale) to $2.77 that same day. Today Gasoline is trading at $2.92 per gallon.
This is an example of volatility that has nothing to do with supply and demand. That 60 million barrels represented about 2.5 days of US consumption. There's no way there should ever have been such downward price spike on the commodities market.

Google was 640 3 months ago
470 last week
running up at 517.05 as we speak
people who do not trade stocks or anything on the market have no clue as to how this works
I hear no-one raising hell about the 18 cents a gallon on gas the US govt gets for doing what? nothing

 

[uscitizen]

I hear no-one raising hell about the 18 cents a gallon on gas the US govt gets for doing what? nothing


So you do not like repaired roads to drive on?
Potholio?

 

[JRK]

I hear no-one raising hell about the 18 cents a gallon on gas the US govt gets for doing what? nothing


So you do not like repaired roads to drive on?
Potholio?

So thats where that money goes.
Do you understand how our system works?
The federal govt builds and maintains interstates

The state, state roads
etc...

Besides whats the difference in Exxon making 10% profit in a company we can invest in as well as making there "books" public and the monies collected in income tax, corporate tax as well as all other taxes associated with the monies collected by the federal govt on Exxon.
the left thinks the oil companies are evil and the federal govt is great.
whats the difference?

 

[thereisnospoon]

I hear no-one raising hell about the 18 cents a gallon on gas the US govt gets for doing what? nothing


So you do not like repaired roads to drive on?
Potholio?

Road building and rehabilitation get federal funding. Most other repairs are left to the states.
And if you believe the federal government has not been robbing federal fuel tax money to pay for other things, you are surely deluded.
The federal gas tax should be suspended until legislation is passed and signed into law that the money is not to be touched for any other purpose than to build and fix roads, bridges and tunnels.
States and cities repair potholes with state and city money.