I have a plan to end oil speculation

[Jerk]

Brothers and sisters, I've got it: All you have to do is make a law that says that if you buy oil on the market floor, then you actually have to take possession of it.

Bam! Problem solved.

I love this beer!!!

[Curly Bill]

I thought you were gonna say we could just shoot the speculators.

[SoonerInKCMO]

That's too much regulation of the free market.

Commie. ;)

[Jerk]

That's too much regulation of the free market.

Commie. ;)

You know, putting oil on the market was actually a way to keep oil companies from controlling the price of oil.

Yes, you heard me right. Oil companies do not control the price of oil.

Anyone who thinks that the 'oil business' is a free-market is a fool (I don't necessarily mean you, KC). Oil companies can't drill where we know there's oil. And most of the world's oil (over 90%) is controlled by foreign governments.

[royalfan5]

Futures markets provide the liquidity necessary to avoid crazy extreme price swings. Look at onions for reference. Maybe speculation drives up the price a little, but it is a **** lot better than the alternative.

[Rogue]

Onions?

I have to laugh thinking about applying this to other areas. What if we had to take possession of all investments?

[royalfan5]

Onions?

I have to laugh thinking about applying this to other areas. What if we had to take possession of all investments?Do a google search for onion futures, and how they were banned in the 50's by Michigan Onion farmers talked Gerry Ford into leading the charge. Now the Grandson of the onion farmer that organized the push for the initial ban is working to get it lifted because without futures they are unable to hedge and face wildly price swings that make it hard to make a consistent profit. The best analogy for commodity markets with futures is playing Russian Roulette, without futures it's playing russian roulette with a full chamber.

[OULenexaman]

The Onion...great web site with good humor..Vadalia Onions...best onions ever

[Chuck Bao]

This just seems like one of the greatest hoaxes of all times.

Oil companies would just love no restrictions, no responsibilies and huge tracks of land opened up free for their taking.

It shouldn't happen like that.

If there are huge oil reserves it belongs to all of us. Let's use it wisely and get the oil companies to bid for the right to prospect for oil and gas with a very high revenue sharing with the government. Opening up it all at once because pump prices are high is just irresponsible.

Get a grip you people.

[StoopTroup]

Just make me the Oil Czar....

I will treat all of you fairly.

http://www.foliomag.com/files/images/there_will_be_blood.jpg

[Jerk]

This just seems like one of the greatest hoaxes of all times.

Oil companies would just love no restrictions, no responsibilies and huge tracks of land opened up free for their taking.

It shouldn't happen like that.

If there are huge oil reserves it belongs to all of us. Let's use it wisely and get the oil companies to bid for the right to prospect for oil and gas with a very high revenue sharing with the government. Opening up it all at once because pump prices are high is just irresponsible.

Get a grip you people.

Government already owns over 90% of the world's oil and production. What more do you want?

[King Crimson]

I love this beer!!!

heh. :D

[Jerk]

heh. :D

http://www.tonyskansascity.com/tonyskansascity/BoulevardWheat.jpg

[Jerk]

Do a google search for onion futures, and how they were banned in the 50's by Michigan Onion farmers talked Gerry Ford into leading the charge. Now the Grandson of the onion farmer that organized the push for the initial ban is working to get it lifted because without futures they are unable to hedge and face wildly price swings that make it hard to make a consistent profit. The best analogy for commodity markets with futures is playing Russian Roulette, without futures it's playing russian roulette with a full chamber.

What about the other idea of food for oil Tell all of those desert nations that we trade them a bushel of wheat for a barrel of oil. If not, then eat your oil.

[royalfan5]

What about the other idea of food for oil Tell all of those desert nations that we trade them a bushel of wheat for a barrel of oil. If not, then eat your oil.

They'll buy their wheat from the Black Sea and Kazkahstan like they do now. Or Argentina. We aren't the only ones who can grow crops.

[RUSH LIMBAUGH is my clone!]

Blame Big Oil, now blame the speculators, blame anyone but those preventing the oil from being produced. They really do think the public is stupid.

[tommieharris91]

Ohh, and blame the fact that our energy infrastructure is rapidly becoming outdated and reliant on states who produce terrists.

[Vaevictis]

Bam! Problem solved.

... and about a brazillian others created.

A ton of producers and buyers use futures and options to lock in prices or ranges of prices.

Example: Southwest airlines. They're doing as well as they are in part because they hedged the **** out of fuel prices. But you can be damn sure they don't take delivery. There's no jet fuel commodity market, so they have to find a commodity that rises and falls with the price of jet fuel, and use that instead. Of course, a good approximation is oil, so they use that instead.

Other folks actually want to take delivery of oil, but there's no local oil exchange that exists or has enough volume, so they go to one of the big ones, enter into contracts there, reverse them when they want to take delivery, and apply the profit or loss to the local purchase.

Requiring people to take delivery would really jack up a lot legitimate uses of the futures markets.