Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Thu Jun 26, 2008 3:23 pm Post subject: Re: Another Record ($140.39)
Zardoz wrote:
NoWorries wrote:
Frankly, oil should have increased by about $10 today, considering all of the above.
Doesn't bode well for tomorrow, does it? Look for another substantial jump.
Yeah. It could be interesting. It's been simmering for a while and building up pressure. It could hit the high $140's tomorrow, or it could drop back below $139, or almost anything in between. _________________ "So while you sit and whistle Dixie with your money and your power.
I can hear the flowers a-growin in the rubble of the towers.
I hear leaders quit their lying
I hear babies quit their crying.
I hear soldiers quit their dying, one and all." - OCMS
Joined: Apr 13, 2005 Posts: 3178 Location: St.Louis, Mo
Posted: Thu Jun 26, 2008 3:23 pm Post subject: Re: Another Record ($140.39)
The Great Scam
By Arthur Shaw. Exclusive to Axis of Logic
Jun 12, 2008, 16:16
Speculators at petroleum exchanges in New York City, London, and Singapore relentlessly drive up the price of a barrel of oil to ever higher levels. These speculators are nothing but underhanded imperialist thieves manipulating "demand" for oil within the context of the demand and supply fundamentals.
Speculators play the chief role behind high oil prices. But there are other factors, such the value of the dollar and geopolitical tensions resulting from imperialist aggressions. The principal aggression is in Iraq where the US aggression has cost 2,000,000 Iraqi lives and where the imperialists steal 2.3 million barrels of oil everyday. The threats of aggression (mainly against Iran and Venezuela) also contribute significantly to the problem. To some extent, the speculators use these "other factors" as a cover or a pretext for their stealing at the petroleum exchanges.
When we talk about the real demand for oil, we're talking about the numbers of barrels of oil the world economy needs every day in order to run.
That number is more or less about 87 million barrels per day. So, 87 million barrels per day, more or less, is what the world, at the moment, really "demands" on a daily basis.
87 million barrels a day is more or less what the world produces or supplies because that's what the world really asks for.
Enter the imperialist thieves ... mostly investment banks, hedge funds, oil companies, other institutional investors, and some big individual players ... operating through floor traders at the three major petroleum exchanges (New York Mercantile Exchange, London Petroleum Exchange (owned by US imperialists) and Singapore Stock Exchange which is much smaller than the other two.
These imperialist thieves submit orders for oil to these exchanges. These orders are called, among other things, "futures" and they represent at least 15 times greater volume than what the world really "demands" or wants; thus, artificially creating a staggering but bogus imbalance between supply and demand for oil.
This multiple of about 15 is not real demand, rather it is a phony "paper" demand, creating an illusory imbalance between supply and demand, pumping up the price of oil.
15 X 87 million bpd = 1,300,000,000 bpd
So, on "paper," the three petroleum markets are "demanding" 1.3 billion barrels everyday when the world only needs or demands 87 million barrels a day - and the price of a barrel soars.
If the world could or would produce 1.3 billion barrels a day, the world would drown in oil. There would be no place to put it.
This oil scam demonstrates the irrationality of the so-called "free" market, but the imperialist thieves make a killing everyday in this "free" market for oil.
Goldman Sachs is perhaps the biggest and most aggressive imperialist thief among the investment banks. Exxon-Mobil, of course, is the biggest among the oil companies. Thousands of hedge funds [often fronts for banks and oil companies] managing capital for the wealthy are running amuck in the oil market.
Driving some of the imperialists to steal, especially the investment banks, is something more than their natural and compulsive avarice. Many of them have of late, suffered catastrophic losses with mortgage-back securities like the so-called "subprimes". Others have fallen through the floor with unbelievable losses in currency trading. So, they look to oil swindles to recoup some or all of their unbearable losses.
Once again, the scam with oil futures and other related financial instruments is sometimes called "speculation" in the oil market.
To get away with the scam, the imperialist thieves tell their cappie [that is, "capitalist"] press or media to spread lies, blaming OPEC for the imbalance between supply and demand for oil. Their friends in the cappie media blame the prices on production cutbacks. They also tell an assortment of lies about China and India using up too much oil or other fabrications the media cooks up itself.
When the truth about the gigantic scam periodically breaks through the pile of lies emitted by the cappie press, the imperialist thieves point their fingers at the floor traders who are hustling futures contracts at the petroleum exchanges in New York, London and Singapore. These floor traders are no more than highly compensated foot soldiers and patsies of the imperialist thieves.
Posted: Thu Jun 26, 2008 3:36 pm Post subject: Re: Another Record ($140.39)
Armageddon, I enjoy reading your posts but this article is bogus. It's way too oversimplified. It doesn't mention the corresponding downward pressure on oil prices when the speculators unwind their long positions.
The CEO of the NYMEX was on CNBC a few weeks back. He pointed out that half the speculators are long and half are short, so they basically cancel each other out.
Speculation has very little to do with the current price, it's simple fundamentals.
Joined: Apr 13, 2005 Posts: 3178 Location: St.Louis, Mo
Posted: Thu Jun 26, 2008 3:46 pm Post subject: Re: Another Record ($140.39)
Niagara wrote:
Armageddon, I enjoy reading your posts but this article is bogus. It's way too oversimplified. It doesn't mention the corresponding downward pressure on oil prices when the speculators unwind their long positions.
The CEO of the NYMEX was on CNBC a few weeks back. He pointed out that half the speculators are long and half are short, so they basically cancel each other out.
Speculation has very little to do with the current price, it's simple fundamentals.
Yeah, the dude really doesn't understand the supply/demand issue. The futures market is driving up the prices faster than it should, but either way, the prices are going to continue rising. There may be a little demand destruction happening in the US, but decline rates should keep this from having any real oil surplus.
Posted: Thu Jun 26, 2008 4:12 pm Post subject: Re: Another Record ($140.39)
I think it's pretty bogus to equate the sale of a futures contract as having the same economic effect as the sale of a barrel of oil. Paper demand gets met with paper supply that is just as easy to create out of thin air. If the futures market was overpriced, supply should be starting to overwhelm demand. The price of the futures contracts would tank as they approach expiration because no one would want future delivery. All the speculators would lose their shirts. The only way that a speculator can affect the supply demand equation for the physical product is to buy and hoard the physical product. The only place that's happening is the SPR. Otherwise, stores of physical oil are lower than they were a year ago. _________________ "So while you sit and whistle Dixie with your money and your power.
I can hear the flowers a-growin in the rubble of the towers.
I hear leaders quit their lying
I hear babies quit their crying.
I hear soldiers quit their dying, one and all." - OCMS
Joined: Apr 13, 2005 Posts: 3178 Location: St.Louis, Mo
Posted: Thu Jun 26, 2008 4:21 pm Post subject: Re: Another Record ($140.39)
smallpoxgirl wrote:
I think it's pretty bogus to equate the sale of a futures contract as having the same economic effect as the sale of a barrel of oil. Paper demand gets met with paper supply that is just as easy to create out of thin air. If the futures market was overpriced, supply should be starting to overwhelm demand. The price of the futures contracts would tank as they approach expiration because no one would want future delivery. All the speculators would lose their shirts. The only way that a speculator can affect the supply demand equation for the physical product is to buy and hoard the physical product. The only place that's happening is the SPR. Otherwise, stores of physical oil are lower than they were a year ago.
Posted: Thu Jun 26, 2008 7:59 pm Post subject: Re: Another Record ($140.39)
I don't think the powers that be will be able to scapegoat the speculator boogyman for much longer. If oil goes to $150 and beyond that is not speculation but full blown panic. Few realize unless they have been reading this forum that the world in 12 to 18 months is going to look drastically different than it does right now. A way of life based on cheap oil is coming an end. Demand destruction is setting yet oil continues to increase. Demand destruction would effectively call the speculator's bluff but this is no bluff.
The 87 MBPD figure includes a lot non-oil products such as ethanol and oil produced from tar sands. This is not the same as producing 87 MBPD of light sweet crude which has an EROEI in the 30 range. The coefficient of net available oil is much lower than 87 MBPD. Remember my graph:
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