Comments on: Isn't oil a strategic commodity?

By: Sunny2006

Sunny2006 — Tue, 13 Jan 2009 11:27:59 +0000

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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By: davitogowan

davitogowan — Tue, 13 Jan 2009 11:16:59 +0000

Every commodity traded by those that have it to those that NEED it is a strategic commodity...
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By: Man of Stone

Man of Stone — Tue, 13 Jan 2009 11:08:59 +0000

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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By: dmowen03

dmowen03 — Tue, 13 Jan 2009 10:45:59 +0000

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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By: smartypants

smartypants — Tue, 13 Jan 2009 10:23:59 +0000

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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