# Oil Prices



## southdakbearfan (Oct 11, 2004)

So, this could be in politics or hot topics, but my question is why do the politicians/regulators not institute/reinstate the requirement that to buy oil on the open market you have to either be in the line of production or capable of holding 5 days worth of production? Every little blip on the political radar is raising hell with oil prices due to massive day trading and market speculation. This is one of the biggest threats to the fragile economy as it stands.

Or is it a combination of big oil wanting big profits and the environmentalists wanting super high prices to force alternatives to the front?


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## Csquared (Sep 5, 2006)

I have wondered the same thing, and what I keep coming back to is that I'm afraid eliminating ALL "speculation" would shut all buyers out of the game EXCEPT for those with facilities to receive millions of barrels of oil...and my fear is that may make it easier for an elite group of buyers to control the price. I could be TOTALLY wrong, as I'm as much of an economist as Obama is a Christian, but I'm desperately trying to find the upside of speculation since on the surface it seems eliminating it would be a no-brainer.

But being a no-brainer, maybe that explains why the new administration promised to address it :wink:


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## southdakbearfan (Oct 11, 2004)

I kind of thought the same, but until the end of the carter admin it was that way.

Right now, the conflict in libya, which accounts for less than 2% of the oil coming out of the middle east, and almost none going to the US is raising hell with oil prices. This is all due to day trading/speculation and has nothing to do with supply/demand. Gasoline supplies in the US are at an almost all time high.

Of course there is also our brilliant gov't that just keeps printing money, devalueing the dollar.


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## TK33 (Aug 12, 2008)

First off, politicians are getting paid for this one way ir another. Obama and greenies from GE and others by oil.

The excuse is that oil trading will be moved to the Dubai markets if they are regulated here.


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