Posted on 06/26/2008 12:35:14 PM PDT by Red Badger
Limiting speculation would push prices to fundamental level, lawmakers told. 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 See full story. There are two kinds of speculators in the futures ma$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." Futures trading in London has not been a major factor in rising oil prices, testified Sir Bob Reid, chairman of the Chairman of London-based ICE Futures Europe. Rising prices are largely a function of fundamental supply and demand, not manipulation or speculation, he said. "Energy speculation has become a growth industry and it is time for the government to intervene," said Rep. John Dingell, D-Mich., chairman of the full committee. "We need to consider a full range of options to counter this rapacious speculation." It was Dingell's strongest statement yet on the role of speculators. Dingell introduced a bill ...that would ask the Energy Department to gather ...facts on energy prices
(Excerpt) Read more at marketwatch.com ...
That would be insanity, sir.
For Congress, it’s meddling with business.....as usual.....
What?!?! They might lose all that extra tax revenue.
Wow, $2/gallon? GM could then get rid of all of those trucks and SUVs. lol
...and elections.
They probably have, and that’s probably part of the problem. (I guarantee Walter Williams wasn’t the professor.)
YUP!
Just the simple announcement that we're taking bids on ANWR and off-shore drilling sites would drop pices instantly.
The speculators would just move to London or Dubai markets via the Internet..........
Congre$$ acting?
They been phoning it in for years..
Speculators? This is convenient because poorly understood. Eliminate margins entirely and see maybe $20 fall off the $140, or maybe not.
They’ll most likely raise the margins to 25-50%..............
Drilling, new refinerys, more Nuke plants and NO TAXES on ALL energy would/could goose Americas economy to the roof.. and send inflation to the floor..
saw an ad this morning on tv, chevy dealer offering a free chevy cobalt with the purchase of any large suv such as the avalanch.
They might. It’s pretty easy to see that somebody might need to nail down some oil price a few months ahead and not be able to tie up that kind of significant money so long. Refiners, airlines, utilities, these kinds of business need some wiggle room.
>>>Congress Critters should be required to take a course in economics BEFORE being sworn in........... <<<
Better...
Congress Critters should be required to take to pass a course in economics BEFORE being sworn in...........
and it might not be a bad idea for President's too!
Horse manure. If they can’t buy and sell oil in New York, they’ll all move to London, Dubhai, or Grand Cayman.
How stupid can you get? Want lower oil prices? Drill.
Well now that would depend on the course too! :)
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