If oil supply has nothing to with the price, then why?????

Discussion in 'Politics' started by JRK, Apr 5, 2012.

  1. JRK
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    JRK Senior Member

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    Obama:
    Is Obama wanting to tap the oil reserve again?

    I thought speculaters was the problem, not supply
     
    Last edited: Apr 5, 2012
  2. g5000
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    g5000 Diamond Member

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    When Bush tapped the oil reserves in 2008, it broke the backs of the speculators. Oil prices plummeted.
     
  3. uscitizen
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    uscitizen Senior Member

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    Umm the recession had something to do with it as well.
     
  4. g5000
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    g5000 Diamond Member

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    Not really. The price of oil shot up because everyone was running away from equities.
     
    Last edited: Apr 5, 2012
  5. JRK
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    JRK Senior Member

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    Congress defies Bush on oil reserve - CNN
    But I thought the supply was not the problem?
    If the equities are the issue, then tapping into the reserves will do little. right?
    I mean which is it, supply or speculators?
    little of both?
    allowing a volitlie situation to exist due to the dependence we have on the middle east as well as Candas sands going east and not south may have something to do with those evil "speculators"
     
  6. initforme
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    initforme VIP Member

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    There is no shortgage of gas. That isnt the problem. I spoke to the gas station owner yesterday as I filled up(its been a month since the last fill up), anyway, he said that there is absolutely no shortage of gas. He blames the speculators artificially driving the costs up and claimed they are driving business away. Thats his take.
     
  7. The T
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    The T George S. Patton Party Supporting Member

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    And using the strategic reserves in this manner is disingenuous, and dangerous.
     
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  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Lib explanation: Oil is sold on the World Market! Supply has no effect on price!
     
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    Last edited: Apr 5, 2012
  9. g5000
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    g5000 Diamond Member

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    Equities were the issue in 2008. The impending credit crisis was causing investors to flee the stock market. So they began parking their money in commodities. And then later, after Bush popped that bubble, they fled commodities and flooded Treasuries. Treasuries are now in a historic record-breaking bubble.

    In 2005, the oil bubble was the result of Hurricane Katrina.

    This year, it is possible war with Iran.

    The common factor between all three is "fear".

    It is not a supply problem. It is fear of a supply problem.
     
    Last edited: Apr 5, 2012
  10. NYcarbineer
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    NYcarbineer Diamond Member

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    Who ever said supply had nothing to do with price?
     

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