Post #288,849
7/13/07 9:06:19 AM
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why is oil so high? oil companies? Hardly
[link|http://business.guardian.co.uk/story/0,,2125371,00.html|http://business.guar...,,2125371,00.html] Investors said hedge funds and pension funds were key drivers behind the latest rally. "This rally is very much fund driven," said Graham Sharp, director at Trafigura, a commodities trading group. "The entry of long-only hedge funds into the market is a major factor this time around. We wouldn't rule out Brent hitting $80 this summer." the artificial highs are not driven by the greedy oil companies, its the same folks who will come whining after your tax dollars when a downside crushes them. fuckers thanx, bill Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep
reach me at [link|mailto:bill.oxley@cox.net|mailto:bill.oxley@cox.net]
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Post #288,850
7/13/07 9:18:46 AM
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This one might not be
The current rally might not be driven by the oil companies, but they have certainly manipulated the market to their advantage in the past.
In fact we can be pretty sure that it isn't the oil companies this time, for the simple reason that the price is stubbornly remaining higher then the oil producers and refiners would like. They would prefer the price remain just below the line where people and countries can justify a switch to alternative energy.
Jay
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Post #288,854
7/13/07 10:58:16 AM
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Oil is not going up. It's the dollar going down.
It just takes more dollars to buy the same old barrel of oil. [link|http://www.upi.com/InternationalIntelligence/view.php?StoryID=20060118-052333-1392r|UPI]: Tehran is preparing to open a bourse, a mercantile exchange and potentially a futures market, where traders can buy and sell oil and gas, along the lines of the International Petroleum Exchange (IPE) in London and the NYTMEX in New York.
The differences are first, that this one would price its energy in euros, not dollars, and second, that it would not use West Texas Intermediate or Brent Crude (from the North Sea) as its standard oil for pricing. It would use a Persian Gulf-produced oil instead.
o o o
Such a move would not be welcomed in Washington, which swiftly moved after the fall of Baghdad in 2003 to reverse Saddam Hussein's impudent decision to start selling Iraqi oil for euros, rather than dollars. After all, the great benefit of running the world's reserve currency means that if all else fails, the United States Treasury can just print more and more of the stuff and pay for its oil imports that way. Alex
Nobody has a more sacred obligation to obey the law than those who make the law. -- Sophocles (496? - 406 BCE)
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Post #288,855
7/13/07 12:01:52 PM
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Notice how old that article is?
Iran has been trying to get this going for several years now with little progress. The US has been leaning on countries and companies not to support this. They have been threatening everybody involved, sellers and buyers of oil if they use this bourse and companies that provide software, hardware and communications if they work on the bourse.
The end result is that this is still years away if ever.
Jay
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Post #288,857
7/13/07 1:00:26 PM
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OTOH...
[link|http://www.bloomberg.com/apps/news?pid=20601087&sid=awYHprN5i52c&refer=worldwide|Bloomberg]: July 13 (Bloomberg) -- Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it's cutting holdings of the U.S. dollar.
Iran wants yen-based transactions ``for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments ``effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News.
The yen rose on expectations for an increase in demand for the currency to buy shipments from Iran, Japan's third-largest oil supplier. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency, while the United Nations Security Council is preparing for another round of sanctions against Iran because of the nation's nuclear research.
``What else can Japan do but to accept the request, once the oil producer sent its wish?'' said Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo. ``The tensions between the U.S. and Iran are escalating, and it's Iran's measure to hedge risk.''
[...] Cheers, Scott.
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Post #288,863
7/13/07 1:53:56 PM
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take the low dollars and buy lots of US realestate
we will buy it back with less dollars later,
well it worked once
thanx,
bill
Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep
reach me at [link|mailto:bill.oxley@cox.net|mailto:bill.oxley@cox.net]
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Post #288,872
7/13/07 4:08:35 PM
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You may be right about the bourse, but...
the real point is that the cost of crude oil to the US has gone up more than the cost of crude oil to EU countries or for that matter other countries whose currencies strengthened against the dollar.
Alex
Nobody has a more sacred obligation to obey the law than those who make the law. -- Sophocles (496? - 406 BCE)
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Post #288,858
7/13/07 1:09:10 PM
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Indeed. See a couple posts down CAN dollar = US 95+ cents.
bcnu,
Mikem
Microsoft Vista. The best reason ever to buy a Mac.
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