Speculation affecting oil market?

iVillage Member
Registered: 08-18-2005
Speculation affecting oil market?
5
Sun, 07-13-2008 - 11:44am

I don't have room to put an accurate title.


What I am curious about is- how much do you think speculators are affecting the price of oil? Do you think having tight regulations on speculators will affect the price of oil alot, a little or not at all?


The reason I ask this is because I was just listening to a debate between two people. One who thinks it won't affect the price much more than $10 a barrel, and another that thinks it can affect it as much as $50 a barrel.

iVillage Member
Registered: 09-08-2006
Sun, 07-13-2008 - 12:16pm

If you have enough people throwing money and betting on the future market (in this case betting that the price of oil will go up) it will in turn cause the price of oil to go up.

 

iVillage Member
Registered: 03-26-2003
Sun, 07-13-2008 - 12:33pm

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Why do I have a feeling we will be bailing out the speculators in 5? years time?

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 12-09-2007
Sun, 07-13-2008 - 8:18pm

Their affect is small if at all.


The devaluation of the dollar has a lot more to do with the price of oil--as well as supply and demand of course.

iVillage Member
Registered: 03-19-2003
Sun, 07-20-2008 - 8:25pm
From what I have heard we can't regulate foreign speculation which is also causing an increase in oil prices.
iVillage Member
Registered: 07-17-2007
Mon, 07-21-2008 - 7:01am
Speculation has something to do with the increased price, so does increased demand. However, for us in the US, the biggest impact has been the relative value of the dollar. Oil is traded in dollars, so it is more difficult to see. If oil was traded in Euros, the world price would not have increased as much, but we would be seeing the same increase at home as our currency is worth less compared to the Euro and most other major currencies. It is basically inflation coming to bite in the @ss caused by deficit spending and other poor economic decisions(or lack of action).