Oil speculation

Originally posted by kevcvs57
I do not understand, you are obviously a pro free market person, nothing wrong with that, but apparently you do not understand the mechanism of supply and demand. It is the basic mechanism that governs the free market, it is what Adam Smith was referring to when he introduced the 'invisible hand' concept.

If enough people/investors demand oil then the pr ...[text shortened]... h their money; but it does raise the price of oil over and above our physical demand for it.

Supply and demand are not physically altered by futures trading. Demand is constantly rising, due mostly to the exponential growth of emerging economies (China, India, Pakistan). Supply is remaining constant, or increasing slower than the growth of demand. Prices increase, not due to futures traders being correct, any more than the winner, and the speed of the Kentucky Derby is dictated by how many people bet at the track.

What truly does drive prices higher is limitations on drilling, exploration, and similar restrictions on processing, transportation and sales. These restrict, prohibit, tax, and confound supply and demand.

Originally posted by Metal Brain
I have noticed that too. That is why I think it is the dollar losing value that is the true cause of higher oil prices. I think Obama is using speculators as scapegoats so he can allow the true cause to go without blame.

Obama is a corrupt puppet.

Any thinking person can read any good history of banking, and see over centuries the influence that governments and their excesses have had on economies, and that as banking and governments have morphed, for example since 1913 the Federal Reserve in the US, currency and economic crises are fundamentally tied to inflating the money supply.

In Obama's three years plus a bit, the United States debt has increased exponentially faster than under spendthrift GW Bush.

Anything he can do to distract from that record, it is only natural he will do.

Originally posted by KazetNagorra
If it was just inflation of the dollar that is causing the oil price (measured in dollars) to rise, wouldn't you expect everything else to become equally more expensive as well?

Everything? Well not week to week, or day to day, but eventually inflation effects everything. By the way the Chicago Merc has futures trading on all commodities, not just oil.