Are Oil Prices Rigged? You bet, say Stanford Profs

[pdhenry]

Are Oil Prices Rigged?

Friday, Aug. 22, 2008 By ARI J. OFFICER AND GARRETT J. HAYES.

We've all read that speculators are driving oil prices artificially high — a claim that gets more interesting in light of oil's recent fall below $115. But maybe we're looking at it from the wrong perspective. Suppose that major suppliers in the oil industry are these manipulative speculators.

Is it possible that oil prices are rigged? You bet. Here's how:

Are Oil Prices Rigged? - TIME

[pdhenry]

OK,the thread title is technically inaccurate. So be it.

[thepolarcrew]

Sovereign funds.

[blamy]

Years ago when gas went up to $1.50 and krept up around $2 people were ranting and raving and gas went down to $1.50 and people were releived. Next year gas was $2.50 and creeping towards $3.00 and people were ranting & raving about the price and it went down and settled around $2.50 and people were relieved. Next year gas was $3.5 and creeping towards $4 and people were ranting and raving about the price and it went back down to around $3.50 and people were relieved. Next year gas was in the $4.50 range and climbing to and beyond the $5.00 range and people were ranting and raving and it went down and people were relieved. NOW I ask a question; why is it that the American people have not seen this trend? Maybe the Earth really is flat!
(P.S. dollar figures may not be exact but you should get the picture)

[Tideland Prius]

Originally Posted by pdhenry

OK,the thread title is technically inaccurate. So be it.

I thought the title was a play on words lol.

[Godiva]

Originally Posted by blamy

NOW I ask a question; why is it that the American people have not seen this trend?

I did.

That's why I bought a Prius in 2005.

[Fraser]

These two "educators" never make a flat statement of fact. They guess, they suppose, they issue questions. But they never provide any factual information to support their position. And remember, Time Magazine long has been a left-leaning periodical with less-than-ideal reliance n factual reporting and accurate information. Don't sweat this one until and unless someone else provides better information.

[MikeSF]

How's this for better information

Report: One trader held 11 pct of Nymex contracts

A single energy conglomerate held 11 percent of all contracts on the New York Mercantile Exchange at one point last month, according to a published report Thursday, suggesting that speculators may have played a larger part in volatile oil markets than once thought.

...

[FL_Prius_Driver]

Since when has the price of oil NOT been rigged? What has happened to make it possible to rig it now and not 5 years ago?

[drash]

BS. The article is a little inaccurate plus the Business Week article is also inaccurate. The ratio is correct but I don't know a trading house that will take less than $100K. You'll control about $1M dollars worth of oil, but, you have to remember, you're bidding against companies representing Indian and Chinese interests. If anything, speculators keep the oil away from suppliers. And now the only thing the new bills will do is outlaw American speculators like me. Congratulations, give the market to the Russians, Chinese, etc. That was a brilliant move... WAKE UP! It's not as black and white as it seems. A lot of this speculation isn't even driven by oil, but because the dollar is tanking. You trade oil for dollars which isn't holding its value against other currencies. For crying out loud even the Loonie is worth more than our dollar. And its getting much, much worse with all those cheap loans now going belly up. People, wake up everything is connected. Blaming speculators for oil prices is like blaming a single baseball players average for the team doing bad.