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2008-06-13 Home Front Economy

Lileks: "high gas prices and shortages of oil make some people feel good"

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Posted by Mike 2008-06-13 06:32|| || Front Page|| [1 views ] Top

#1 Duh! The oil industry is worried that Iran may soon be in a position of dictating oil prices. Why? They no longer trust President Bush. The distancing has already begun. Fortunately, Sen. McCain is likely to be tied into sensible policies.

Posted by McZoid 2008-06-13 06:59|| 2008-06-13 06:59|| Front Page Top

#2 What industry do you work in, McZoid?

I want to start a PAC dedicated to exporting its jobs to Saudi Arabia too.

Posted by Abdominal Snowman 2008-06-13 09:42|| 2008-06-13 09:42|| Front Page Top

#3 high gas prices and shortages of oil make some people feel good.

So does flagellation for some people, but that doesn't mean it is good FOR you either.

Posted by DarthVader">DarthVader 2008-06-13 11:04|| 2008-06-13 11:04|| Front Page Top

#4 There was an interesting discussion on Hanity and Colmes about the increased presence of Hedge fund investment in the oil futures. I think it was Morris who was expounding on how that has increased the price of oil. Also, Beck said that the profit margin for the oil companies was 8.5%, while the profit margin on hedge fund investments was 80%, and perhaps they should have a windfall profit tax. I am starting to believe that there is manipulation in the oil market, rather than a lack of supply.

Posted by bman 2008-06-13 11:49|| 2008-06-13 11:49|| Front Page Top

#5 Morris on H&C said that the rules regarding speculation on oil futures were relaxed in 1999 and the amount of money chasing the futures has increased from $16B in '99 to $260B recently. Hannity cut him off before he could make the very important point that hedge funds, by and large, are investing money given them by public employee retirment systems, union pension managers, and the like. When those implode and can't meet their obligations they'll dump them back onto the taxpayers as they've done in the past. Morris' sources were a couple of oil specialists at large investment banks.

Further the low-margin parts of the oil business (refining, transport, wholesalers) who utilize futures to smooth their cycles will be at risk of being wiped out when the bubble bursts but Morris did't go into that.

Posted by AzCat 2008-06-13 12:20|| 2008-06-13 12:20|| Front Page Top

23:17 Chaviter the Wicked aka Broadhead6
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