Posted on 06/19/2008 6:12:21 AM PDT by jveritas
US regulators have announced plans to impose limits on oil trades overseas.
The US Commodity Futures Trading Commission said the London-based electronic exchange would have to comply with US rules.
The move comes as oil prices notch up record highs, amid fears that speculators are distorting the market. As a result, fuel costs have shot up hitting the global economy. Airlines have been hit badly, with near record losses expected for 2008 in the US.
US airlines were forecast to report $10bn (£5bn) of losses this financial year as sky-high fuel costs erode profits, according to the industry group Air Transport Association (ATA).
Oil prices slipped from their record highs near $140 a barrel reached during Monday trade as investors were cautious ahead of plans by Saudi Arabia to increase production in July.
US sweet, light crude finished down 60 cents at $134.01, while London Brent settled 99 cents lower at $133.72.
Read more at:
http://news.bbc.co.uk/2/hi/business/7460310.stm
ping
That would put a stop to those looking to make a quick buck off of our backs.
It would also put a stop to companies like Southwest Airlines being able to hedge their fuel cost like they have been successfully doing.
That works out to about 23,809,523.81 gal.
For all you good conservatives who suddenly think that the government can legislate the price of oil down..think again.
The US Government can sure screw up the market place and cause losses for investors, but they can’t produce oil.
The difference between tight supply and loose supply, rising prices and falling prices is very narrow. Without futures and speculators the price will jump around even more. The reason that the speculators look like the bad guys is that the prices has been steadily rising..so everyone wants to be long. It has been that way for a couple years. There has been a shortage of oil..China has had rationing of diesel. China may also still be trying to fill their strategic reserve.
Anything that slows us down in opening ANWR(quickest oil) and Offshore will just cost us more money.
From what I understand, this will do little to nothing to stop the speculation. Commodities are bought and sold at a variety of different markets...this will just take the speculation off shore.
Someone correct me if I’m wrong, by the way.
LOL! You CLEARLY know nothing at all about futures or the global free market
What it would mean, is that the prices of oil would skyrocket into the ozone!
Are you ready for 50 bucks a gallon gasoline?
I play with my very own money in the futures market and am very well acquainted with everything involved.
Futures are the dynamic for the entire global trade in all commodities from bacon to platinum
London and Dubai are "offshore"..........
If they truely want to hurt the speculators they should dump the whole of the National Reserve on the oil market in one day. Of course that’s a heck of a gamble to take.
The airlines should still be able to “pay in advance” for fuel to be delivered at some future date............
How can the US establish rules over a UK trade site? What if the site or the county just says “no.”
Seems that the best the US could do would be to deny US citizens permission to partipate in foreign future trading.
Similar to the law when US Citizens were not allowed to own any gold.
The SPR is only capable of delivering 4.4 MMBPD.
Of course what do you would happen the day after the Strategic Reserve ran dry?
Computer programmed trading and off shore uncrackable futures commodities trades are simply screwing the consumer out of every penny they can.
We never saw weekly price jumps in fuel even after large hurricanes, refinery fires, equipment downtime, etc.
Cease to be ruled by the MSM and the socialist school system.
Look, research, think.
cease to be ruled by dogma and authority - look at the world and think!
- Francis Bacon
The Goldman Sachs of the world bet heavily upon lending to subprime borrowers, figgering to take over an inflationary higher home; thus, profiting upon the resale of the repo.
The housing bubble slowed down; therefore the Goldman Sachs of the world had to recoup or Bear Stearns.
So buy oil on the futures markets, have the media announce rebels in Nigeria doing this or that for oil to spike. Sell on the way up, wait for markets to calm to buy. Buy, then have the MSM announce a record hurricane season for this year, then sell on the way up, buy when the market settles down.
Bear Stearns was too, too slow to jump aboard this gravy train.
Rub the No Drill Dems noses in this....Increasing production won't lower prices, eh?
No it wouldn't; it would just move more of those markets to Singapore or Tokyo or London or Brussels. It's a worldwide market, and the worldwide market is not subject to US laws.
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