Speculative premium on oil at $ 60 a barrel: India

[Psycho4Bud]

Hit by the relentless rise in crude oil prices, India today sought an end to specualtive trading and suggested that oil producers and consumers vest control of the oil markets to cool overheated prices.

An estimated 60 dollars per barrels is the "speculative premium" in the current oil prices, Petroleum Secretary M S Srinivasan said.


"Speculative trading amounts to a few trillion dollars currently." India blames speculators working on the New York Mercantile Exchange for crude oil prices touching an all time high of $140 per barrel and pushed for their exit from the oil markets at the meeting of world's leading oil producers and consumers in Jeddah today.


"On ariving here yesterday evening, we met Saudi Oil Minister Ali al-Naimi who too believes that the world has enough oil and it was speculation and paper trading that is to be blamed for the escalation in prices," Petroleum Secretary M S Srinivasan told PTI from Jeddah.


An estimated 60 dollars per barrel is the "speculative premium" in the current oil prices, he said. "Speculative trading amounts to few trillion dollars currently."


Trading on exchanges like the New York Mercantile Exchange or Nymex, and more recently on Intercontinental Exchange, London is contributing "enormously" to high prices and the prices will fall drastically if crude was eliminated from the commodities traded on these exchanges, he said.


Many in the oil cartel Opec share India's belief that investors are artifically driving up oil prices. Hedge funds, banks and pension funds have poured capital into oil trading in recet years, betting that demand will increase. Analysts say these bets have become self-fulfilling prophecies, helping to push prices higher.
Speculative premium on oil at $ 60 a barrel: India

I would bet that there are many in Congress and Senate that have investments in oil. Why else are they moving so slow to react to this situation and reluctant to encourage future drilling?

Have a good one!:s4:

Psycho4Bud Reviewed by Psycho4Bud on 06-22-2008. Speculative premium on oil at $ 60 a barrel: India Hit by the relentless rise in crude oil prices, India today sought an end to specualtive trading and suggested that oil producers and consumers vest control of the oil markets to cool overheated prices. An estimated 60 dollars per barrels is the "speculative premium" in the current oil prices, Petroleum Secretary M S Srinivasan said. "Speculative trading amounts to a few trillion dollars currently." India blames speculators working on the New York Mercantile Exchange for crude oil Rating: 5

[Mississippi Steve]

Finaly somebody is seeing the light and is making sense. Now... the question is.... if the price of oil was dropped to $60/barrel, how long would it be before we see it at the pumps......and then how long would it be before we saw it in reduced prices for groceries??

[killerweed420]

Taking oil off the futures market would certainly help alot. But opec would still try to gouge us.
I like what Brazil has done with ethanol from sugar canes. They import NO oil.

[birdgirl73]

I would bet that there are many in Congress and Senate that have investments in oil. Why else are they moving so slow to react to this situation and reluctant to encourage future drilling?

This is what I call an excellent question. Seriously. An important one, too. Oil speculation is actually what's been thought to be behind all the price increases we're seeing. We're going to run out of fossil fuel sooner than later, sure. But speculative trading in the American and London markets is what's at the heart of the current crisis.

I'm pretty sure you already nailed the answer, too. It's precisely because our lawmakers have investments in oil and gas that they've been moving slowly. They're wringing their hands over this oil price crisis all the way to the bank. Future drilling and alternative energy exploration will take lots of time, money, and unwelcome (by the anti-government mindset-types) intervention, so that makes it unpopular in the near term, especially in an election year. But even worse, it might take money out of their pockets.

[Coelho]

I like what Brazil has done with ethanol from sugar canes. They import NO oil.

Indeed... in fact, after some recent discoveries we are even exporting oil...

[NaughtyDreadz]

Indeed... in fact, after some recent discoveries we are even exporting oil...

How are the new ethanol cars??? I remember when I was a kid it was a bitch getting them to start on cold mornings... but now I'd assume the tech is Å?ons from what it used to be

[Coelho]

How are the new ethanol cars??? I remember when I was a kid it was a bitch getting them to start on cold mornings... but now I'd assume the tech is Å?ons from what it used to be

Well... today there are the "flex" cars, which can be fueled on gasoline and alcohol... so you can start it with gasoline, and when the engine were hot enough, change it to alcohol.

[dragonrider]

If there really is a $60 specualtive premium on oil, then it is a bubble and will burst soon. I would think you can't maintain that kind of premuim on commodity futures for long. Then of course, when it finally pops, there will be all kinds of concern about the precipitous 50% drop back to normal prices, and a rush to bail out the poor speculators who lost their shirts....

[NaughtyDreadz]

Well... today there are the "flex" cars, which can be fueled on gasoline and alcohol... so you can start it with gasoline, and when the engine were hot enough, change it to alcohol.

oh word?? that's what flex is??? HA!!! you learn something everyday..

[killerweed420]

I see some expert told congressmen today that the futures market accounts for 50% of cost of fuel so that would mean if we just shut down futures trading on oil and gas we would have $2 gas. If congress gave a shit they would just shut it down. The dems won't do it because then they would lose a lot of ground on enviormental issues. The repubs won't do it because them and there cronnies are the ones capitalizing on the futures market.
Will we ever not have any crooks running for congress?