Quote:
Originally Posted by mynameisjim
Everytime you watch the news some ass-hole from Goldman Sachs or whatever is predicting that oil will hit $150. The other day someone from OPEC said $200. OF COURSE that makes investors flock to oil. Combine that with the normal text book move of investing in commodities like oil to hedge against inflation and you have the outrageous oil prices you have right now. It's an upward spiral.
The people who control that market are loving this so they're going to ride it as long as they can.
Those high oil predictions sound like bad news to us but they're a siren song for investors. Imagine if they were talking about a stock. Say every few days some expert was all over the news saying Google stock will hit $900 or $1000, everybody would be buying google stock like crazy making the price go up day after day.
Supplies are very stable right now. This has nothing to do with supply and demand.
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Yes...those that are dealing in oil futures are making money hand over fist and with no required reserve...and up to a 95% margin call...they have little at risk. Great scheme created by Ken Lay and is why Enron collapsed...while those at the top made hundreds of millions. I was highly pissed off when the SOB had a heart attack before he had to report to prison.