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Opec and IEA agree speculation bad

Dawn.com -- RIYADH: For a change, Opec and the IEA seem to concur on some of the major issues afflicting the energy world today. This is indeed a breath of fresh air, for the two are distinctly different in many senses. Their briefs are different. They represent two worlds, two interest groups and two schools of thought.

Opec has emphasized for quite some time that fundamentals – demand and supply – were no longer in full control of the oil markets, and that the world needed to act to curb speculation.

Markets need transparency, producers have been insisting for some time now. The point now seems to be getting across. The energy world today increasingly appreciates that wide scale speculation in oil markets poses tremendous risks.

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Submitted Jul 04, 2009 By: BurntOrange

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niceguytx Champion Author Houston Posts:7,468 Points:1,450,825 Joined:Sep 2005	Message Posted: Jul 4, 2009 4:02:39 PM Ignore niceguytx Report Abuse Sounds like more regulation and transparency might help.
Tucker1961 Sophomore Author Seattle Posts:202 Points:21,125 Joined:Jun 2009	Message Posted: Jul 4, 2009 3:13:55 PM Ignore Tucker1961 Report Abuse Depends on who it is affecting positively or negatively
ruc2827 Veteran Author Illinois Posts:260 Points:134,780 Joined:May 2004	Message Posted: Jul 4, 2009 1:38:47 PM Ignore ruc2827 Report Abuse You think? http://www.stopoilspeculationnow.com. In response to previous post, there is nothing wrong with speculation and taking risks and profiting from it, however the problem is unlimited leverage and naked trading, allowing prices to be manipulated solely by trading and not underlying demand for the commodity. The regulation is simple and similar to other major trading markets. Oil has become the last market where cornering the market and market manipulation is still legal. [Edited by: ruc2827 at 7/4/2009 2:43:05 PM EST]
BurntOrange Champion Author Austin Posts:1,114 Points:343,485 Joined:Nov 2007	Message Posted: Jul 4, 2009 12:56:33 PM Ignore BurntOrange Report Abuse For those who love to bash OPEC and speculators, and paint them with the same brush--you clearly need some education. OPEC wants to keep oil at a price where alternatives will not be sought out. They realize that if oil goes too high, then alternatives become cost-effective, and oil will use lose energy-market share. Speculators in any commodity, are buying futures. Oil futures are typically priced for delivery about 6 weeks into the future. An oil future is a bet that the price will go up. Producers of commodities sell futures because it allows them to lock in a price, and not be concerned with market volatility. The commodities future market has been in place for decades. Although people who don't understand how they work demonize speculators as they fill up their SUVs, the reality is that speculators have little impact on prices, and even then, it's a short-term effect. In the end, the real commodity, whether it's oil, or pork bellies, or copper, must be delivered and paid for. The commodity price will align with its true market value. [Edited by: BurntOrange at 7/4/2009 1:57:09 PM EST]
matman01 Champion Author Detroit Posts:7,072 Points:728,595 Joined:May 2007	Message Posted: Jul 4, 2009 12:28:51 PM Ignore matman01 Report Abuse I agree...speculating is evil.
purvismike Champion Author Wisconsin Posts:1,495 Points:301,910 Joined:Feb 2008	Message Posted: Jul 4, 2009 12:25:20 PM Ignore purvismike Report Abuse Most people do not even know what Speculation means more less how it works!!!
papagreg Champion Author Sacramento Posts:1,242 Points:447,450 Joined:Jan 2008	Message Posted: Jul 4, 2009 12:12:54 PM Ignore papagreg Report Abuse What BS! OPEC said last December that they wanted oil to be around $70 a barrel. Do they think we are that stupid to think that they aren't at least helping change prices through the speculation? Do they think that we wouldn't suspect that they were involved in the speculation trading? Too bad for anyone whom was ignorant enough to not believe OPEC was involved.
jwalkerh Champion Author Louisiana Posts:1,039 Points:301,110 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:58:58 AM Ignore jwalkerh Report Abuse Finally, someone is seeing reality and using some common sense.
NavyEOD Champion Author Los Angeles Posts:3,652 Points:764,965 Joined:Jul 2007	Message Posted: Jul 4, 2009 11:58:29 AM Ignore NavyEOD Report Abuse I have always said this. Speculators are always driving the price up, thats there job.
Plebe2001 All-Star Author Philadelphia Posts:834 Points:139,070 Joined:Jul 2008	Message Posted: Jul 4, 2009 11:54:11 AM Ignore Plebe2001 Report Abuse We do need to see if we can minimize the speculation, but the speculation does go both ways, that is up and also down. We have seen this over the last year. We need the system to get most commodity products to market at fair prices over time. Over time then system has worked good. We just need to try to find a way to minimize the extremes.
travelzonecente Champion Author Riverside Posts:1,749 Points:408,080 Joined:Jun 2008	Message Posted: Jul 4, 2009 11:54:07 AM Ignore travelzonecente Report Abuse Speculation is not the problem of the oil companies. World demand and regulations are.
pricechecker08 Champion Author Ohio Posts:2,619 Points:541,140 Joined:Jan 2008	Message Posted: Jul 4, 2009 11:51:42 AM Ignore pricechecker08 Report Abuse Do you think OPEC will learn?
foxups Champion Author Toledo Posts:2,776 Points:544,540 Joined:Feb 2004	Message Posted: Jul 4, 2009 11:47:38 AM Ignore foxups Report Abuse thats the way it should be
HawaiianGuy Champion Author Idaho Posts:3,109 Points:1,818,130 Joined:May 2003	Message Posted: Jul 4, 2009 11:46:37 AM Ignore HawaiianGuy Report Abuse I agree. Speculators are doing nothing but harm to the consumer and the economy. Just so a relatively few can reap quick, easy profits. Unconscionable.
Dennis783 Champion Author Wisconsin Posts:7,316 Points:1,459,780 Joined:Sep 2005	Message Posted: Jul 4, 2009 11:46:17 AM Ignore Dennis783 Report Abuse they are just figuring out speculators are bad?
C4U Champion Author Salt Lake City Posts:2,723 Points:517,815 Joined:May 2008	Message Posted: Jul 4, 2009 11:39:49 AM Ignore C4U Report Abuse Conservation is the best thing we can do. We still need to implement a fast track to alternative fuels and energy to be come energy independent from foreign support, big oil companies and local utilities monopoly.
Wonderdaddie Champion Author Alabama Posts:1,124 Points:196,290 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:39:13 AM Ignore Wonderdaddie Report Abuse We'll see.....
nemoFL Champion Author Florida Posts:2,610 Points:375,825 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:37:37 AM Ignore nemoFL Report Abuse amazing that they agree
Star777 Rookie Author San Francisco Posts:3 Points:605 Joined:Jul 2009	Message Posted: Jul 4, 2009 11:36:24 AM Ignore Star777 Report Abuse I thought OPEC was in charge of supply. Supply and demand would would work out find - if it was with out interferance from the oil refiners and their buddies. Ever notice the price of gas falls before and election and then goes back up afterward? What's up with that?
humblepie Champion Author Toledo Posts:6,187 Points:1,099,750 Joined:Mar 2006	Message Posted: Jul 4, 2009 11:36:19 AM Ignore humblepie Report Abuse we sure didnt hear this when oil was over $147 did we ? now that its under $70 suddenly they agree? obamanomics pure and simple ( makes no sense ) [Edited by: humblepie at 7/4/2009 12:37:49 PM EST]
Beboper Champion Author Virginia Posts:2,250 Points:885,210 Joined:Oct 2005	Message Posted: Jul 4, 2009 11:35:43 AM Ignore Beboper Report Abuse that is right still conserve
repeater1 Champion Author Kansas Posts:1,943 Points:1,103,820 Joined:Oct 2005	Message Posted: Jul 4, 2009 11:35:39 AM Ignore repeater1 Report Abuse OPEC can't seem to make up their minds about the price of crude. Maybe they are trying to deflect some the the criticism they receive and send it to the speculators. They are both at fault for a lot of this mess.
finch2dancandy Rookie Author Georgia Posts:71 Points:10,760 Joined:Jul 2009	Message Posted: Jul 4, 2009 11:35:19 AM Ignore finch2dancandy Report Abuse Why are we made dependent on Opec countries when we have resources here in our own country.
icmfal Champion Author Raleigh Posts:2,723 Points:506,460 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:31:59 AM Ignore icmfal Report Abuse DUH!!!! but we still need to conserve gas.
letmathe Champion Author Chicago Posts:8,631 Points:2,018,285 Joined:May 2001	Message Posted: Jul 4, 2009 11:29:22 AM Ignore letmathe Report Abuse I'm with esquared! Conserve as much as possible.
sgonza98 Champion Author San Antonio Posts:3,435 Points:539,115 Joined:Apr 2004	Message Posted: Jul 4, 2009 11:28:15 AM Ignore sgonza98 Report Abuse OPEC was trying to feed speculation for the past month. What gives?
sduyck Champion Author Oregon Posts:1,364 Points:116,465 Joined:Sep 2003	Message Posted: Jul 4, 2009 11:27:01 AM Ignore sduyck Report Abuse speculators thought gasoline and oil should be worth as much money as water i heard many times ...look what people pay for bottled water compared to gasoline the difference is we need water we can live without oil ...now everyone knows that fact
esquared Champion Author Oklahoma City Posts:2,720 Points:894,975 Joined:Jan 2006	Message Posted: Jul 4, 2009 11:24:59 AM Ignore esquared Report Abuse Conserve here, conserve now!
PathfinderSC Champion Author South Carolina Posts:3,007 Points:558,860 Joined:Mar 2008	Message Posted: Jul 4, 2009 11:24:22 AM Ignore PathfinderSC Report Abuse Gee you kidding me, you just found this out?
kidshare Champion Author Nevada Posts:1,808 Points:644,270 Joined:Sep 2006	Message Posted: Jul 4, 2009 11:21:09 AM Ignore kidshare Report Abuse Speculation is the single reason government is broke.
remay All-Star Author Houston Posts:719 Points:855,470 Joined:May 2006	Message Posted: Jul 4, 2009 11:18:58 AM Ignore remay Report Abuse "...The energy world today increasingly appreciates that wide scale speculation in oil markets poses tremendous risks...." And who might do something about the traders and speculators to stop the artificial pricing?
Skyeja All-Star Author New Hampshire Posts:533 Points:330,255 Joined:Sep 2008	Message Posted: Jul 4, 2009 11:18:48 AM Ignore Skyeja Report Abuse Ya think?
truckguy115 All-Star Author Orange County Posts:522 Points:71,700 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:16:03 AM Ignore truckguy115 Report Abuse really speculation bad. come on tell me something i don't know allready.
smoketown Champion Author Cincinnati Posts:1,802 Points:386,190 Joined:Feb 2008	Message Posted: Jul 4, 2009 11:14:59 AM Ignore smoketown Report Abuse THATS JUST A FRONT....
guyincognitoNY Champion Author New York Posts:1,878 Points:382,410 Joined:Sep 2008	Message Posted: Jul 4, 2009 11:11:49 AM Ignore guyincognitoNY Report Abuse deth to OPEC.
PaylessKY Champion Author Kentucky Posts:1,340 Points:363,580 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:07:03 AM Ignore PaylessKY Report Abuse Opec was probably behind the speculation to bring the price up. They just saw it wasn't working to their advantage.
vegaland Champion Author Houston Posts:1,007 Points:225,705 Joined:May 2006	Message Posted: Jul 4, 2009 11:06:01 AM Ignore vegaland Report Abuse With controls you have shortages. Without controls you have price fluctuations.
bluebird1 Champion Author Toronto Posts:9,165 Points:1,846,245 Joined:May 2004	Message Posted: Jul 4, 2009 11:05:10 AM Ignore bluebird1 Report Abuse Everyone but big Oil & speculators already was on board in this (except bought & paid for politicians as well).
gas_too_high Champion Author Columbus Posts:2,459 Points:703,510 Joined:Aug 2005	Message Posted: Jul 4, 2009 11:01:56 AM Ignore gas_too_high Report Abuse OPEC thinks speculation is bad -- for them. That's the biggest endorsement I've ever heard for the speculators.
JOHNNY95206 Champion Author Stockton Posts:1,315 Points:150,030 Joined:May 2008	Message Posted: Jul 4, 2009 10:57:58 AM Ignore JOHNNY95206 Report Abuse Speculators = Manipulators
Chazzy12 Champion Author Massachusetts Posts:1,635 Points:293,755 Joined:Dec 2008	Message Posted: Jul 4, 2009 10:57:23 AM Ignore Chazzy12 Report Abuse It would be best if OPEC were to go away.
dl72 All-Star Author Los Angeles Posts:892 Points:152,910 Joined:May 2009	Message Posted: Jul 4, 2009 10:51:44 AM Ignore dl72 Report Abuse So now they are starting to realize the implacations, now what will they do about it.
phurburger Champion Author Atlanta Posts:1,659 Points:352,995 Joined:Oct 2005	Message Posted: Jul 4, 2009 10:51:29 AM Ignore phurburger Report Abuse What a bunch of bunk. 2 totally disparate organizations come to the same conclusion via totally different means. There is nothing in common here.
FPLREP Champion Author Virginia Posts:2,292 Points:1,214,480 Joined:Oct 2005	Message Posted: Jul 4, 2009 10:51:17 AM Ignore FPLREP Report Abuse OPEC loves speculation when it drives up prices like last summer. That is why they are in the financial dumpster they planned and bought like it would always stay there!
jorja13 All-Star Author British Columbia Posts:543 Points:66,240 Joined:Aug 2008	Message Posted: Jul 4, 2009 10:48:45 AM Ignore jorja13 Report Abuse The rest of the article seems to have disappeared. Seems like everyone agrees that the speculators are a problem except the speculators themselves and the governments that are raking in the gas tax.
arvo87 Champion Author New Mexico Posts:2,198 Points:438,800 Joined:Jul 2008	Message Posted: Jul 4, 2009 10:46:57 AM Ignore arvo87 Report Abuse wow, you think that there is manipulation in the speculators marketplace? DUH
Bigwaynef Champion Author South Carolina Posts:2,412 Points:825,550 Joined:Dec 2006	Message Posted: Jul 4, 2009 10:41:47 AM Ignore Bigwaynef Report Abuse Look out trash can or recycle bin, one of ya is about to get stuffed!
fuelconscious Veteran Author Los Angeles Posts:378 Points:110,350 Joined:Jan 2008	Message Posted: Jul 4, 2009 10:41:24 AM Ignore fuelconscious Report Abuse Lets stone both organizations to death.
NorthglennBill Champion Author Denver Posts:1,749 Points:331,205 Joined:Oct 2008	Message Posted: Jul 4, 2009 10:39:30 AM Ignore NorthglennBill Report Abuse For once, OPEC agrees with my thinking.
hauler43 Champion Author Oakland Posts:3,480 Points:1,562,410 Joined:Sep 2003	Message Posted: Jul 4, 2009 10:39:10 AM Ignore hauler43 Report Abuse OK, so now we must pick our poison, OPEC or speculators.