To: babygene
it seems to me that going out and buying up all the oil at $100 a barrel and selling it at $140 a barrel is not the right thing to do.
Is that even possible to do? Nobody can buy up all the oil on the market. And if it is going for $100 a barrel why aren't other people buying it at that price instead of letting someone buy at $100 and sell to them at $140?
31 posted on
07/27/2008 11:40:03 PM PDT by
gitmo
(From now on, ending a sentence with a preposition is something up with which I will not put.)
To: gitmo
“Is that even possible to do? Nobody can buy up all the oil on the market.”
You wouldn’t have to buy it all. Just enough to effect the supply. Saudi Arabia pumps it out of the ground for $3 a barrel and it gets bought and sold 80 times before you get any for your car.
36 posted on
07/27/2008 11:57:41 PM PDT by
babygene
(This Government no longer works to secure our freedoms and provide for our common defense.)
To: gitmo
This is a really good article on the oil futures and how they are traded and purchased. Alas it is from WAPO, yuck, best I can find for now
Transparency Sought as Speculators' Activity in Oil Market Grows
The approach on how to deal with "speculators" in oil futures is different from the financial equities. This is where congress can really F things up and make gas even more expensive.
IMHO - The oil problem is supply and demand, something that the likes of Reid, BO and Pelosi refuse to admit and instead want to go on witch hunts.
43 posted on
07/28/2008 12:27:38 AM PDT by
Fred
(The Democrat Party is the Nadir of Nilhilism)
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