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Obama may tap strategic reserves

Speculators are not interested in long term anything, they can't take delivery on any oil and it costs them to hold those tankers out in the bay. All Obama is doing is calling their bluff and taking the wind out of their greedy sails. Bush had the Saudi's increasing production before his re-election bid which did the same thing. I doubt they will do the same for Obama after he got Bin Laden out of his cushy digs.

Apparently you have no clue who oil speculators set the price of oil. It is ALL based on future supply. If they think in the future there will be more oil, then oil now is worth less. If they think in the future less oil will be available, it sends up the price now.

To say they don't care about long term anything is really quite ignorant.
 
Emergency reserves should be used in emergency shortages. Not to save a politicians political image.
 
Emergency reserves should be used in emergency shortages. Not to save a politicians political image.

Exactly.. and if there is a confrontation in the ME.. we may need those strategic reserves ..
 
Exactly.. and if there is a confrontation in the ME.. we may need those strategic reserves ..

That's what I'm think as well. As things heat up in the Middle East the reality of a conflict becomes more likely. We need to save those reserves for times such as that and it's very very unwise to use them in lieu of what we see internationally in the Middle East right now.
 
Apparently you have no clue who oil speculators set the price of oil. It is ALL based on future supply. If they think in the future there will be more oil, then oil now is worth less. If they think in the future less oil will be available, it sends up the price now.

To say they don't care about long term anything is really quite ignorant.

Why would speculators give a hoot about how supply is a year or a decade from now? How could they even have a clue? You are ignorant of the reality of how speculators work. It's all about emmotions and how much MONEY they are willing to throw at oil prices THIS MONTH before somebody turns around and says "There's a glut of oil on the market and prices need to come down".
 
We are having a fit over the fact gas has doubled since obama took the reigns and seems too be trending up yet again.


Even Lisa see's the absurdity of this move, that should impress you libs.


You know what's interesting though is that you libs constantly deny drilling more oil in US would stabilize prices but suddenly releasing a little from our reserves will do just that. You guys need to pick a story and stick with it.

When the increase in oil prices is primarily speculation-driven, yes, it can have exactly that effect.

More drilling will not have a significant influence on actual oil supply, nor would a tiny percentage increase in oil supply 5-10 years from now have any effect on speculators this year.

"Picking a story and sticking to it" is exactly the opposite of what one should do because the real world isn't that simple.

P.S. The Obama administration isn't as anti-oil as you think they are.
 
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When the increase in oil prices is primarily speculation-driven, yes, it can have exactly that effect.

More drilling will not have a significant influence on actual oil supply, nor would a tiny percentage increase in oil supply 5-10 years from now have any effect on speculators this year.

"Picking a story and sticking to it" is exactly the opposite of what one should do because the real world isn't that simple.

P.S. The Obama administration isn't as anti-oil as you think they are.

Since it largely is speculation driven, any additional production could potentially lower prices. So could threatening to open up the SPR. If the speculators think there will be more supply, the price will go down.
 
Since it largely is speculation driven, any additional production could potentially lower prices. So could threatening to open up the SPR. If the speculators think there will be more supply, the price will go down.

New drilling doesn't increase production for several years, and speculators aren't going to think there will be more supply. Speculators don't share this fantasy that oil production will ever again keep pace with oil demand. Even declaring open season on ANWR and the deep gulf drilling, the effect on supply compared to what demand is doing is just laughably small.

To clarify: I am not categorically against new drilling, I just think people need to realize that more drilling isn't going to save us.
 
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Since it largely is speculation driven, any additional production could potentially lower prices. So could threatening to open up the SPR. If the speculators think there will be more supply, the price will go down.

Why do you suddenly seem so reasonable? Did I crash into a tree skiing today, am I in a coma, WTF is going on here?
 
Since it largely is speculation driven, any additional production could potentially lower prices. So could threatening to open up the SPR. If the speculators think there will be more supply, the price will go down.
Speculation today is driven by geopolitics (Mid East). Threats by Iran probably have a great deal to do with the price of gas at our pumps.
 
what do you expect? Obama's all about 2012. Obamacares real impact? After the election. This silly payroll tax break? After the election. High gas prices? Deal with the root "after" the election. After all, he did say $5 a gallon of gas isn't a bad deal.
 
I don't think alot of you understand what speculating is. In it's simplest terms I am filling up every 50 gallon drum I have tomorrow with diesel, all 6 of them because I am speculating diesels going to do nothing but go up for a while. Same thing with airlines trucking comps etc. They try too lock in prices if they see them going up by purchasing Tens of thousands of gallons at a set price. As more comps do this the price goes up. If on the other hand something makes them think the price will go down, for instance if the pres of USA says he is going too open drilling up, these comps will quickly try to unload the high price fuel they have ordered and the price falls. It's not a perfect system but it works.
 
I don't think alot of you understand what speculating is. In it's simplest terms I am filling up every 50 gallon drum I have tomorrow with diesel, all 6 of them because I am speculating diesels going to do nothing but go up for a while. Same thing with airlines trucking comps etc. They try too lock in prices if they see them going up by purchasing Tens of thousands of gallons at a set price. As more comps do this the price goes up. If on the other hand something makes them think the price will go down, for instance if the pres of USA says he is going too open drilling up, these comps will quickly try to unload the high price fuel they have ordered and the price falls. It's not a perfect system but it works.

Except airlines and trucking companies are purchasing that fuel with the intent to use it. Commodities speculators are "purchasing" that fuel with the intent of taking a cut while providing no actual service. They don't even like have a giant warehouse full of oil, they don't even take physical possession of the oil. They don't do anything. Oh, they'll tell you that their service provides "much needed liquidity" to the market, or some other bull****. Right. Because oil companies have such a difficult time selling their product, cashflow is hard to come buy.
 
For the last few weeks all we've heard is the price of gas is going up, it will be over $5, the poor won't be able to afford it, it will stall the recovery and send the economy to a spiral. Well golly, if this isn't an emergency, what have y'all been crowing about?

If even the threat of tapping the reserves slows speculation, it's a good thing, not for Republicans, but for the country!
 
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I'm especially going to love it if Obama suspends or reduces the tax on fuel this summer. The rants from the right are going to be precious.
 
I don't think alot of you understand what speculating is. In it's simplest terms I am filling up every 50 gallon drum I have tomorrow with diesel, all 6 of them because I am speculating diesels going to do nothing but go up for a while. Same thing with airlines trucking comps etc. They try too lock in prices if they see them going up by purchasing Tens of thousands of gallons at a set price. As more comps do this the price goes up. If on the other hand something makes them think the price will go down, for instance if the pres of USA says he is going too open drilling up, these comps will quickly try to unload the high price fuel they have ordered and the price falls. It's not a perfect system but it works.


Re speculation

One has to consider the time frames of the oil contracts. The vast majority of speculators do not want to have delievery of the oil. The close the oil contract comes to the present date, the less speculation is going on. The spot price will have very little speculation, as the majority of bidders are those that want and need the oil for actual productive uses.


As the most publicized oil prices are the spot prices, future production will have little impact as it is oil that will not be avaliable for years to come
 
For the last few weeks all we've heard is the price of gas is going up, it will be over $5, the poor won't be able to afford it, it will stall the recovery and send the economy to a spiral. Well golly, if this isn't an emergency, what have y'all been crowing about?

If even the threat of tapping the reserves slows speculation, it's a good thing, not for Republicans, but for the country!

You are avoiding the letter of and the intent of the emergency reserve act. It specifically says shortages of oil, it says nothing about price of oil.
 
Re speculation

One has to consider the time frames of the oil contracts. The vast majority of speculators do not want to have delievery of the oil. The close the oil contract comes to the present date, the less speculation is going on. The spot price will have very little speculation, as the majority of bidders are those that want and need the oil for actual productive uses.


As the most publicized oil prices are the spot prices, future production will have little impact as it is oil that will not be avaliable for years to come

These brokers never take delivery it is true but they do buy up huge quantities of oil, on paper anyway and then resell it too people who do take delivery. In a sense they are alot like someone who sells stuff on e-bay for other people. They provide a service for a fee and our always trying to get the best price for their customers so they buy buy buy when oils going up and dump dump dump if they think oil prices will fall. I don't really see how any other system would be better, this really does provide liquidity in the market. As for spot prices they reflect what people try too see in their crystal balls.
 
The price at the pump here dropped six cents/gal. since Friday. When a President says that he "may open the reserves" it has a pretty big impact.
 
These brokers never take delivery it is true but they do buy up huge quantities of oil, on paper anyway and then resell it too people who do take delivery. In a sense they are alot like someone who sells stuff on e-bay for other people. They provide a service for a fee and our always trying to get the best price for their customers so they buy buy buy when oils going up and dump dump dump if they think oil prices will fall. I don't really see how any other system would be better, this really does provide liquidity in the market. As for spot prices they reflect what people try too see in their crystal balls.

There must be a better way when prices go up as demand falls. Is that the way it is supposed to work?
 
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