If it is and I believe it is, I do not believe it should be traded on the futures and options market where pure speculation can be used to drive up the price and essentially hold consumers hostage to their demands for the higher price. I believe there have been commodities removed before due to extreme situations.
Oil is virtually a necessity, and as such should not be subject to gambling (speculation). There is supposed to be a supply and demand market. There is no lack of present supply, only speculation of a lack. As long as this can be perpetuated, indefinitely,the sky is falling, the hurricane is coming, Iran is building a nuke, etc., the price can be artifically manipulated by "someone". This needs to stop, and the only way to stop it is to remove oil and gasoline from the Futures Market. No one should be allowed to play games with vital resources, for fun or profit.
I strongly agree with you. Oil is necessary to our every day lives and economy. I believe is is along the lines of water…if water didn't fall from the sky and had to be mined..these companies would charge the hell out of for it even though we need it for life. I think the oil companies should be government run for no profit…just make enough to reinvest in exploration.
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January 13th, 2009 at 5:23 am
I strongly agree with you. Oil is necessary to our every day lives and economy. I believe is is along the lines of water…if water didn't fall from the sky and had to be mined..these companies would charge the hell out of for it even though we need it for life. I think the oil companies should be government run for no profit…just make enough to reinvest in exploration.
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January 13th, 2009 at 5:45 am
Every commodities trade involves two parties: one who thinks the commodity will sell for more when the contract is due and one who thinks it will sell for less. This is how markets work. Speculators do not "hold consumers hostage to their demands." They just try to make money by making a guess about whether oil will be more or less expensive in the future.
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January 13th, 2009 at 6:08 am
I agree, but I don't think we can do what you are asking. Oil is a worldwide commodity and the price is set on the world stage. You can't say that the US is only going to buy oil at X amount of dollars when everyone else on the planet is buying it at Xplus dollars. It would be nice, but it can't be done. All we can do is find alternate places in the U.S. to drill or find alternate fuels period.
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January 13th, 2009 at 6:16 am
Every commodity traded by those that have it to those that NEED it is a strategic commodity…
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January 13th, 2009 at 6:27 am
Who could blame you for being upset at high oil prices?
Do you really think there is oil reserves? Or is current levels used up before it can be produced, is that possible?
Plus China and India and other eastern countries rapid growth and demand. A billion bicycles traded in for cars.
Plus Saudi oil controlling interests. Oil consumption is visible is it not. Two car families, SUVs, China, India,
News flashes of the 70s had crisis too. Was more oil discovered in recent years. Markets trade on fear and greed.
Hard to control oil if you dont own it, or discover it. Use it up without replenishing it. Texas oil wells, where are they today.
Is food, soya, beef traded on futures and options?
I never understood futures and options. Just a few more ideas outside the box.
They are players why blame it on a system. Just take it?
Maybe trading correlates with freedom. What is there if there is no trading? – Force? Take what you need?. There are scammers and players everywhere but dont blame systems that have been around longer than the use of the commodity.
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