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Posted by D Sherman [72.47.153.24] on Saturday, February 25, 2012 at 19:57:23 :
In Reply to: $4.29 a gallon for diesel. posted by junkyardog [72.71.216.82] on Saturday, February 25, 2012 at 18:18:45 :
Something like 70% of the oil futures contracts are now being traded by speculators, whereas a few years ago 70% were being traded by end users. If we made the speculators take delivery of their oil, that would put an end to it real quick. If that's too communistic, at least raise the amount of cash they need to put up to buy a futures contract. Comex does this all the time with silver futures whenever the price of silver starts getting too high. That's how they brought down the Hunt brothers.
Right now, the US is EXPORTING gasoline, we have so much of it. I agree we need more domestic production and we could easily get it, but this current price spike is nothing but pure speculation. Some sharp traders are going to make billions with their manipulations while producing absolutely nothing useful to the economy as a result.
And one more thing, at least in the Northwest, the explosion at the Cherry Point refinery last week has shut down the main local source, which means higher transportation costs and more demand on other refineries.
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