Oil prices expected to rise above $200 per barrel

Of course it isn't. As you point out, the price of energy is not elastic. If the price of energy goes up, the usage still remains high. People are driving less by making all their little trips around town at once (going to the store, the mall, getting the dry-cleaning) and staying a little closer to home, but their overall spending on fuel is increasing.

The price of fuel is not the limiting factor in the expansion of the Indian and Chinese economy.

With a limited supply, and increasing demand, the price will continue to increase.

No, we are looking at an product (energy) whose price is inelastic. You can read about inelastic prices and the law of supply and demand on Wikipedia and other online sources.

Jeff

You don't like the words "gambling parlor", but as I taught you earlier, the commodities market is exactly that. When price movements are partially based on "fears" and "concerns" expressed by traders who are in no way connected with any oil-related company, we are dealing with nonsense.

Alternative to what? Hedge funds playing with oil prices? They serve no function other than to make money for a select group of investors in those funds, as well as the managers of the funds. The alternative is to close oil trading to non-related investors.

There's no reason not to that you can describe.

We agree that some people could make a better choice of vehicle. But, no matter what you drive, you MUST buy fuel.

With few exceptions, every news article about oil prices mentions speculators. In that context, the word "speculators" refers to investors not related in any way to the oil industry.

If you disagree, tell me what "speculators" refers to.

Would you agree that supply & demand are not the ONLY factors affecting oil prices?

The only thing that you taught me is that you don't know what you're talking about.

You have yet to show:

Alternative to an open market. If you don't think that hedge funds should be doing this, write to the SEC and your elected representatives, asking for proper regulation of the market.

Well, write your representives.

By the same argument, I shouldn't have been able to buy shares of XOM (ExxonMobil).

Gee, when I drive my bicycle, I buy my fuel at the grocery store.

jeff

Actually, they don't. They say things like, "on fear of additional refinery problems, the price of gasoline spiked." However, they don't say who caused the price of gasoline to spike.

Really? Or is it airline companies trying to lock in the price of jet fuel before it goes up even more?

Now, if you were smart, you would use google to find articles like this, which do argue that speculators are responsible:

Jeff

Because their trades are often completely disconnected from reality. Example: Fears of renewed violence in a country which contributes next to nothing in terms of crude oil.

Let's stick to one financial entity which we KNOW is unrelated to the businesses you mentioned: HEDGE FUNDS

Are you saying such speculators have ZERO effect on the price of oil? Yes or no? ZERO effect?

I work in an open market - the grocery biz. My customers (chains & wholesalers) can buy from anyone they want and sell to anyone they want. Although there are commodity investments representing some grocery products, that arena has little or no effect on prices in my business.

Do you know why there's little or no effect?

While we're on the subject, what business are you in? It might help to know, in terms of providing analogies.

Gee...that's cute, but not an option for everyone. You know that. But you will now disagree.

I'm not claiming that all factors aren't true (supply & demand, for instance). If oil companies were run by saints blessed by you and I, they'd still have to buy their raw material and tack on a profit. My beef is with extraneous factors which affect the price of the raw material.

By the way, in another message, you said something about whether you should not be allowed to buy stock in oil companies. That was a few minutes ago, so you've had a chance to think about why that question is a mistake. Have you figured out why?

At how many grocery stores will you need to shop, between your place and Disney Land?

Did you EVER see a report from ANY of those Committees? You will not see any in the media, you need to search the Congressional Record for their report. You never see the Congress doing ANTHING to increase our supply to help meet our demand.

Dims that control Congress pretend to be the party of the "workingman." In reality they are the party of the "non-working men". That's sad; all they care about is buying your votes with taxes paid by those that work..

Because I think we have already hit the 'apogee' of the temperature rise and it's all downhill from here.

A good deal of our energy reserves are far away from anyone.

And, if there is a major coal reserve in my back yard, I would gladly sell to the highest bidder...

We have enough nuclear energy to power the whole country for 2 billion years, all we have to do is build the plants.

Once we had them up to 200% capacity of what we need for fixed power, the left over capacity could power cars. Build it and the technology will come.

That's because you know almost nothing.....

And Greenpeace...PITA...Friends of the Earth....

You would sell to the lowest. I know better.

If we have enough nuclear capacity to produce all the electricity we need, then the oil and coal reserves in this country could probably provide enough gasoline for ~150 years. If nobody figures out a solution before that, they deserve what they get.

...LONG before that...