The Goat Pen

Kenyans, it seems.

I'm pretty sure I could have gone another 8.5 feet off my roof today with no injuries. soccer players are huge pussies.

That dude had nothing to do with soccer, fool.

he's more of a soccer player than me.

“He was a lion of a man, and he departed us in much the same way.”

That's bullshit, lions don't die from jumping out a second story window...

"For example, several recent analyses of oil prices seem to suggest that as much as 15-20 bucks of the 100 dollar price of a barrel of oil these days is as a result of speculation by profit motivated financial investers...."

That's merely speculation on their part, although I'll admit it does sound better to use the word "analysis". Makes it seem more official. Might as well call monetary speculation "analysis" as well. Those people are just analyzing which way the markets are heading and trying to caiiiiish in on it...

60 minutes had a great story about how speculators are driving the price of oil up because they saw it as a safe place to park money.

I can't relate the whole crux of the idea they were relaying but a major oil supplier was asked what percentage did his company have in the commodities market as compared to say Goldman Sachs and his reply was 1 or 2 %.

Certainly consumption by India and China are a major contributor but there hasn't ever been an oil shortage on a global scale that I'm aware of in recent history meaning there isn't a supply issue, and if there isn't a supply issue then it kind of derails the singular consumption argument globally.

You still give no credence to the role of pure speculation huh, Hedge. I'm surprized. The 60 Minutes piece was one of many who fairly clearly portrayed the difference.

Its interesting because your opinion seems to be ideological, based upon your faith in markets, rather than analytical. That's fine but please don't pretend I do not know what "analysis" is.

i just wondered if you were interested. Obiously you are not. No worries.

Dammit, you guys are making me break out Socrates again.

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China and Brasil are the major drivers of the global consumption of crude. The year over year growth in global consumption over the past 5 years has been probably about 1.5 million barrels/day. So, you don't have to have an oil shortage, necessarily, to have prices rise. All you need is for continued development in Hang Zhou and the Sao Paolo coupled with disruptions in production from Libya to Sudan due to unrest and you have a nice recipe for price increases, before you throw in the premium from speculative investing. Speculators deserve their fair attribution, but even that is not the main crux of why you're paying $4.11 9/10 for a gallon of Regular.

Get the speculators out of the market and prices will be cut in half.

Wow.

If you told the speculators that tomorrow, they had to put 75% of the money to do what they are doing, 99% of them would run screaming from the place. Guran-damn-tee it.

Y'all sonsabitches STFU, keep buying oil, and get this shit off the soccer thread.

I have been buying gasoline and dumping it into my basement. Soon I'll be rich as nazis!

"That's fine but please don't pretend I do not know what "analysis" is."

I know you do, I was just being sassful. I'm sure that "speculation" plays some role in price discovery of any commodity or anything at all, really, that can be bought or sold. Indeed, that is one of the essential aspects of discovering the price of anything, i.e., finding out how much demand there is. Stock, bond and futures markets are merely one way to quantify such demand or lack thereof. "Speculation" can just as easily drive prices down as up. Look what happened to the housing market. Of course, no one was complaining about those mean, bad speculators when housing prices were going up, up, up. Everybody was happy as could be about that. But wait, when it comes to food, oil, 30 year treasury bonds, that's a different story! WHHHAAAAAAAAA!!! I like it when general prices on something I own are going up!! WHAAHAHAAAAAAAA!! As long as I'm making money, it's fine!! WHHHAAAAAAAAAAAA!!! But wait, I don't like it when I have to pay more for gas and steaks!! WWHHHHAHHAAAAAAAA!!! Let's keep the "speculators" in the housing market and any other market that it suits me for prices to be going up in, but let's get them out of any market that has to do with things I want to be able to buy cheap. Yeah, that's the ticket. WWHAHHHHHAAAAAAAAAAAAAAA!!!

Somehow I think that even the most adamant socialist couldn't help but realize that that just ain't how it works. And we haven't even broached the subject of who gets to decide which markets are "OK" for "speculators" to participate in and which ones are off limits. I'm sure the komrads over at Central Planning have it all figured out already, though. Um, no thanks....

I think its ok to talk oil/gas stuff on the nascar thread

I am shocked, shocked, to learn that Qatar may have bribed their way to the bid.