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by MoonOwl from The Brink of Madness

Last Post 8 days, 5 hours Ago


"Gas could fall to $2 if Congress acts, analysts say"
Jun 25, 2008 | 7:23 AM
Category: News
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Here's a bit:

"WASHINGTON (MarketWatch) -- The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.
Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.
Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets. Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.
"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel.""

http://www.marketwatch.com/news/story/gas-could-fall-2
-if/story.aspx?guid={2673C102-68E0-41D9-9C9A-10EE2E7239
48}&dist=msr_13

Congress act for the benefit of WeThePeople?  Pardon me if I don't hold my breath.

MoonOwl

15 Comments |  Add a Comment

Member Comments Total Comments: 15
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yellowdog read my blog view my photos
Jun 25, 2008 | 9:00 AM

Congress act? HA!!!!

They are too busy figuring out how to bail our crooked lenders and ignorant buyers.
MoonOwl read my blog view my photos
Jun 25, 2008 | 7:35 PM

*takes a paper towel and tries to wipe the smoke from the mirrors....*
FloydFreak read my blog view my photos
Jun 26, 2008 | 3:28 AM

"Record oil prices are inflated by speculation and not justified by market fundamentals,"

I am certainly no expert but, if you ask me, this is the SAME thing that occurred in the real estate market. It is now (and has been) undergoing a major correction since that bubble burst.

I believe that the same thing will eventually take place with oil. It cannot sustain itself unless there is a supply disruption of some sort (terrorists, hurricane).

I will reiterate a point that I made last week in a post of mine: The "evil speculators" would not be gambling on higher prices (which is what they're doing) if there was an INCREASE in SUPPLY. At this point, short of governmental intervention, a supply increase is the only thing that will rein in prices.
Neanderthal read my blog
Jun 26, 2008 | 6:19 AM

I wonder how many congresssmen and women on the floor are involved in oil futures markets? Could this legislation be hitting to close to home?
MoonOwl read my blog view my photos
Jun 26, 2008 | 6:26 AM

I think you're right. They travel into all sorts of things. DotComs, homes, food, oil..... Leaving havoc where ever they go while padding their portfolios.

The Saudis are increasing production, but we'll see if it helps. yeah right....

Governmental intervention on WeThePeople's behalf? As I said above, I'm not holding my breath. Congress has proven they don't give two flips what the people they are supposed to represent think. Unless it's some stupid, feel-good thing that doesn't take much effort. They have an easier time acting against us like HR1955 (S1959). We have lots of voting out to do. Too bad there is no integrity in our election system any longer.. Oh wait, no wonder they don't have to be accountable to us any longer......
MoonOwl read my blog view my photos
Jun 26, 2008 | 7:03 AM

My above response was to FloydFreak.

Neanderthal, I bet there are more than we'd like. Same w/investing in the MIC. More than we'd like.

What a tangled web they weave?
sipedo read my blog view my photos
Jun 26, 2008 | 12:23 PM

example: I just looked at home prices in my hometown up in Michigan, I found a house, a 3/1 with central air/heat on 1/2 acre for 35K. 4 years ago that same home would have sold for 120K.

The same will happen to oil. There is no shortage on supply. There is more than ample refinery production. The price of oil is artificial, and while speculators are making lots of money now, look for them to lose their butts in the future, just like in real estate.
alexkon read my blog
Jun 26, 2008 | 3:36 PM

Shouldn't we(America) be getting gas from Iraq as payment for the debt we incurred?
MoonOwl read my blog view my photos
Jun 26, 2008 | 4:31 PM

Yes, didn't Rupert Murdoch tell us oil would be $20 a barrel? Oops....
59Cadillac read my blog
Jun 26, 2008 | 5:29 PM

Gas dropping to 2 bucks a gallon! If I had wings I could fly!
Neanderthal read my blog
Jun 29, 2008 | 8:37 AM

I haven't one shred of evidence but it would not surprise me if Opec nations were buying their own oil (then returning it) in order to keep the pressure on "supply" strong. Motive, opportunity and the means are certainly in place for such clandestine activity.

Could it be that most of our suspicions are misdirected resulting into effectively "chasing our own tail?"
Old-Obi-Wan read my blog view my photos
Jun 29, 2008 | 12:35 PM

You have to remember two things when you go to your voting booth . The Arabs are our enemy not our friends . And our crooked politicians don't have the brains to help the majority. They don't want to offend the Greenies , Vote them all out of office, maybe the next batch will be a little better
jodif read my blog
Jun 30, 2008 | 6:54 AM

I am new to bloging, but I can't believe that the more I read, the more people I see agree with my opinions. It's amazing and really frustrating that the media does not portray the true feelings of America. They are bent on keeping us down and feeling bad about our situation. I agree get the green freaks out and lets take the oil from iraq. I think we've paid a high enough price!!
Skippy read my blog
Jun 30, 2008 | 9:56 AM

MarketWatch story is fundamentally correct. Think of it as changing the odds on a horserace, nothing more. Worth mentioning we CAN drill ourselves out of this problem! The moronic comments by Senator Nelson aside (how can he be so dumb and live so long?) click on this link and learn;

http://youtube.com/watch?v=UOpcPfAarjY
Skippy read my blog
Jun 30, 2008 | 10:02 AM

MarketWatch story is fundamentally correct. Think of it as changing the odds on a horserace, nothing more. Worth mentioning we CAN drill ourselves out of this problem! The moronic comments by Senator Nelson aside (how can he be so dumb and live so long?) click on this link and learn;

http://youtube.com/watch?v=UOpcPfAarjY
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MoonOwl

I'm a 45yr old DomesticGoddess and MamaRaptor. I'm out-spoken, opinionated & totally unPC.

Member Since: 2/20/2007


 

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