I repeat 9 months ago the oil barrel was at $ 75. Now it is over $ 140 i.e. an increase of over 85%. Please bring me any free market data such as supply and demand and decrease in the dollar or any other factor that justify this incredible increase. You cannot of course because this data does not exist. This current trend of crazy and irrational oil speculations run against all the fundamentals of our free market capitalist economy.
Could YOU bring US some data to prove your claim that the price would be $90 without speculators?
Speculators have not caused the largest oil fields in the world to go into steep decline and have diminishing oil output which is the cause of the escalating oil prices. Where will that supply to replace the mammoth oil fields come from? You think speculators don’t know that there is no replacing that lost oil output?
You really think that these declining oil feilds and supply and demand are not causing the rise in oil prices? If you do I suggest you put down the NY times and read about economics, Adam Smith , Hayek, Milton Friedman (”Free to Choose”).
What you say is crazy. There is no formula for determing how fast the price of oil is to rise accordding to an imbalance in supply and demand and a decline in the dollar. I personally think oil is low now and will rise much higher because of Peak oil: http://www.speroforum.com/site/article.asp?idarticle=15622&t=End+of+the+Petroleum+Age%3F
It exists, but the data that exists also lacks justification. It is called a bubble, and we have seen it in internet stocks (valuations absurdly high relative to worth), real estate (ditto), etc. We saw precisely the same thing in the 1970s. I bet with a normalization to today's prices, it would be almost exactly the same graph. That, too, proved to be a big bubble that burst in a big way, with prices going from $40 a barrel (1970s dollars) down to $10 a barrel in just a very short time.
I look at it a different way. I see it as a golden opportunity for the GOP candidates to hang this squarely around the Democrats' collective necks and pound them with it from now through Nov.
“Please bring me any free market data such as supply and demand and decrease in the dollar or any other factor that justify this incredible increase.”
Do you understand the role of price in a market?
The following graphs of world oil suppy and demand clearly show that world oil supply has not met world oil demand for several years. Demand has been greater than suppyl.This , the most basic law of economics, the law of supply and demand should put an end to all this scapegoating of the speculators (the free market), hopefully.
Proof that demand has not met supply for several years
The markets possess a lot more information than you about supply and demand conditions. I tend to trust markets more than the opinion of any single analyst.
Please bring me any free market data such as supply and demand and decrease in the dollar or any other factor that justify this incredible increase.
Here's your data: there is no excess supply. Inventories are lower than usual. If prices were above fundamental value, then someone would be having to take supply off the market, i.e. hoarding oil. That's just not happening.
The market is clearing. Supply is equal to demand. How can you possibly say a price that clears the market is unjustified?