by Divorced one like Bush Anyone else see this report? The report by Masters Capital Management said investors poured $60 billion into oil futures markets during the first five months of the year as oil prices soared from $95 a barrel in January to $145 a barrel by July. Since then, these investors have withdrawn […]
Via the sainted and gorgeous Bess Levin at Dealbreaker the erudite Felix Salmon at Portfolio.com, Michael Giberson at Knowledge Problem summarizes why even a Bush Administration initiative that might have had an upside falls victim to Daniel Davies’s Three Laws: In response to disruptions caused by Hurricane Gustav, the DOE has indicated a willingness to […]
I wrote something about crude oil, inventories and contango below and there were 57 comments including one, from Aaron which refered to this post in the future indicative. A lot of the discussion is Krugman pro and con (mostly con). I think I will review my take on his arguments here as an introduction. I […]
By: Divorced one like Bush Being that there is a lot of “authoritative” talking going on about the cause of the up’s and down’s of oil and one cause being suggested is the anticipation of storms, I thought looking at the history of storms and oil price would help toward answering the hypothesis of oil […]
By: Divorced one like BushNo body knows, how dry I am. I went home, I rang the bell, my wife came out and gave me hell. Juan posted a link to this paper: OPEC Pricing Power, The Need for a New Perspective Besides the issue of how oil is priced, and the relationship of the […]
This will teach them, right? H.R. 6377 directs CFTC to use all its authority, including its emergency powers, immediately to curb the role of excessive speculation in the energy and swaps futures markets and take other corrective actions as necessary to eliminate any market disturbance that prevents energy markets from accurately reflecting the forces of […]
Rick Newman of Useless News and World Report busts some myths. And gets to the heart of the “speculators” issue: Many companies, for instance, want to lock in the price they’re going to pay down the road for petroleum products and other supplies they need to run their businesses. So they make agreements with suppliers […]
Watching Cspan at lunch of the House debt on taxes and energy Rep Emanual stated there are currently 9300 unused oil drilling permits in the US. The counter to the statement was from Rep McCrery: There must be a reason for them being unused. Yes, obviously if they are unused there is a reason. Any […]
The Albuquerque Tribune editorializes: In oil drilling, the question is always who suffers and who benefits – not in the abstract but in the details of daily lives. Sure, the American economy needs more American oil. But mining and property laws are often ruinous to ranchers, farmers and homeowners who are beset by drillers, their […]
Arnold Kling writes: If the oil company executives want to put money on their “working assumption of $15-$30 per barrel,” then they should go short in the futures market. But if their goal is to maximize shareholder wealth, then they should make long-term investment planning decisions based on the futures price of about $60 a […]