They're Back: Speculators again reportedly behind rising oil prices

[Joanne98]

BY KEVIN G. HALL


WASHINGTON -- Oil consumption has fallen, demand from U.S. motorists for gasoline is flat at best, and refiners that turn crude into fuel are operating well below capacity. Yet oil prices keep marching toward $90 a barrel, pushing gasoline toward $3 a gallon in many markets, and prompting American drivers to ask, "What gives?"


Blame it on the same folks who brought you $140 oil and $4 gasoline in 2008: Wall Street speculators.

Experts attribute much of the recent rise in prices to flows of speculative money into oil markets. These bets are fueled by investor expectations that the U.S. and global economies are poised to return to growth and thus spark increased use of oil. Strong growth in China supports the narrative of rising oil consumption and tightening supplies.

"The thinking goes that rising stock (market) prices implies expanding business activity, implies growing energy demand, implies rising oil prices. I think you can make that case, but it's awfully weak," said Michael Fitzpatrick, vice president-energy for MF Global, a financial firm that brokers the sale of contracts for future delivery of oil.

http://www.kjonline.com/news/they_re-back-speculators-again-reportedly-behind-rising-oil-prices_2010-04-03.html

[bluestateguy]

1. Fucking pencil neck little geeks

nt

[Warpy]

2. I pointed that out some time ago

but at least this time, they're not goosing up the prices of things like rice and milk, as well.

People who didn't take advantage of cash for clunkers are going to be kicking themselves over the next several month unless Uncle Sam intervenes, something I really don't see happening.

[RUMMYisFROSTED]

3. Pathology.

[ck4829]

4. Do they get a warm, fuzzy feeling from seeing lines outside gas stations?

[Terry in Austin]

6. Gas lines will be here soon enough, regardless

Oil scarcity, meet car culture. Speculators may hasten the day, but they won't be what brings it.

...Not that that's any excuse to exploit the situation, but hey, that's just a day at the office for capitalism!

[NJmaverick]

5. This should be a high priority target for President Obama and the Dems

[notesdev]

7. Gambling with OUR money again

All the biggest players in this area are all insolvent, and manage to avoid recognition thereof (temporarily) only because the government is legitimizing accounting fraud. So the money they are all speculating with (and expecting private profits from) is OUR money, courtesy Turbo Tim's Bailout Bonanza.