March 7, 201214 yr A House subcommittee held a hearing on "The American Energy Initiative" Wednesday morning that focused solely on rising pump prices. Seventy members of Congress signed a letter this week to regulators at the Commodity Futures Trading Commission (CFTC), urging immediate action on oil speculation by enacting "strong position limits to eliminate excessive oil speculation" and to "utilize all authorities available to…make sure that the price of oil and gasoline reflects the fundamentals of supply and demand." http://finance.yahoo.com/blogs/daily-ticker/oil-speculators-must-stopped-ctfc-needs-obey-law-182903332.html Edited March 7, 201214 yr by newarkcatholicfan
March 7, 201214 yr Feel-good/look-at-me-I'm-trying-to-help-useless measure. Will it lower gas prices? Probably so. Will it have a huge impact? No. Why? Because speculators are just a small portion of the problem. The underlying problem is not being addressed and hasn't been for decades so we're decades away from solving it. If anyone thinks getting rid of speculators is going to get us to $2 gas you simply do not understand the market. We are still going to be in a for a shock when the economy gets back into gear. Gas prices are going to go up even more. If we keep our heads in the sand about the real issue and keep calling speculators the bogeyman we'll continue down this path of high-priced fuel. It's here to stay.
March 7, 201214 yr Feel-good/look-at-me-I'm-trying-to-help-useless measure. Will it lower gas prices? Probably so. Will it have a huge impact? No. Why? Because speculators are just a small portion of the problem. The underlying problem is not being addressed and hasn't been for decades so we're decades away from solving it. If anyone thinks getting rid of speculators is going to get us to $2 gas you simply do not understand the market. We are still going to be in a for a shock when the economy gets back into gear. Gas prices are going to go up even more. If we keep our heads in the sand about the real issue and keep calling speculators the bogeyman we'll continue down this path of high-priced fuel. It's here to stay. Gas prices aren't going to allow that to happen they way things are going. So what exactly is the real issue?
March 7, 201214 yr Gas prices aren't going to allow that to happen they way things are going. So what exactly is the real issue? Gas prices aren't going to determine how the economy does. When the economy gets going there will be more worldwide demand for oil to use for manufacturing and transportation. That's what will drive up the oil prices and ultimately gas prices to even higher than today. The problem is that at some point the oil price will be so high it causes us to back into a recession.
March 7, 201214 yr Seems like the higher the price of gas the worse off the econ is. Not true. At some point though it will get to a point where the economy cannot support it. That's what we saw last time.
March 7, 201214 yr John Anthony is the BGP speculator critic. He'll weigh in soon. I've seen a report by some group saying if you removed the speculators the price of a gallon of gas would be about 50 cents less. So the $3.80 I paid yesterday would be $3.30. Or the $3.50 paid would be $3.00. No what?
March 7, 201214 yr Author I think it was on CNN They were interviewing a guy who stated without the speculators gas would be no more than 1.50 a gal. He had a crap load of facts and numbers to back his statement.
March 7, 201214 yr John Anthony is the BGP speculator critic. He'll weigh in soon. I've seen a report by some group saying if you removed the speculators the price of a gallon of gas would be about 50 cents less. So the $3.80 I paid yesterday would be $3.30. Or the $3.50 paid would be $3.00. No what? Build more oil refineries.
March 7, 201214 yr Build more oil refineries. And what oil will come through it? Cheap crude ? Tar Sands?
March 7, 201214 yr DeFazio bill taxes oil traders So let's agree it's 80 cents. Everyone feeling good suddenly? When the economy gets good and we're sill paying $3.20? $4.00?
March 7, 201214 yr 0.80 a gallon , Assume 12 gal a week at 52 weeks for a year is a about $500. Correct. It helps but it isn't the chief culprit.
March 7, 201214 yr I thought I read somewhere recently that overall U.S. oil consumption is down to near post WWII numbers? Also, worldwide consumption has leveled of over the past decade. Someone smarter than me can figure this up, after adjusting for inflation, what is the price of a gallon of gas from1950 compared to now?
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