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David Zanoni
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David Zanoni is the owner of startbuildingit.com. He is ranked in the top 1% out of over 5,000 analysts according to tipranks.com. He has a success rate of over 70%. David is a graduate of Rutgers University with a B.S. in Management. He is an independent long term investor of quality stocks and... More
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  • Hey Oil Speculators - Drive Oil to $30 a Barrel ! 5 comments
    Jul 10, 2009 10:09 PM | about stocks: USO, OIL, DIG, DUG

         I am on a crusade to rally the same oil speculators or traders that drove the price of oil to $147 last summer and to $72 this summer to do their part to take the price down to $30 a barrel.  By bringing the price down to $30, you will be helping the economy by allowing businesses to increase their profits and allow consumers to keep more of their hard earned money. 

         Come on speculators, begin shorting the oil futures hand over fist driving that oil price down.   Cover your shorts along the way - you'll make money, businesses will have lower costs and higher profits and consumers will funnel more money into the economy.  Let's work together to create an oil stimulus program.  

    futures.tradingcharts.com/chart/CO/M

    Stocks: USO, OIL, DIG, DUG
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Comments (5)
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  • skank.net
    , contributor
    Comments (2) | Send Message
     
    <sarcasm> Great idea, drive down the price of oil to a level that will bring back gas guzzling SUVs, cause waste and harm the environment. The low price will also have the added benefit of causing the cancellation of many projects that would lead to the production of alternative energy in the future. That way, we'll have less energy, especially clean energy, in the future and so that prices will spike really high when the economy begins to recover and keep us in recession! David, you're just a genius! </sarcasm>
    11 Jul 2009, 09:46 AM Reply Like
  • Tod Ginnis
    , contributor
    Comment (1) | Send Message
     
    LOL. I was kind of hoping David was being facetious with his plea. If you understand the nature of physical commodity trading, you'd realize that speculators cannot "control" the price of oil for an extended period unless they are willing to accept delivery of massive amounts of crude oil...and pay to store it.

     

    I'm still waiting for someone to find these secret warehouses full of a gazillion barrels of oil from last summer. If they could control the oil price, of course they'd send it lower! They'd get the government and the Bill O'Reilly's of the world off their backs.

     

    Please check out a piece I wrote on the subject last year: bit.ly/6AxBJ

     

    -Tod Ginnis
    11 Jul 2009, 11:29 AM Reply Like
  • skank.net
    , contributor
    Comments (2) | Send Message
     
    As you likely know, there were large amounts of oil put into storage when the price was at its point. Anyone who could bought at $40 or below, got storage for a year at $9 a barrel and sold a contract for delivery a year later at $60, then pocketed $11 per barrel. And this was a good thing. Cheap oil does no one any favors. It won't last and hurts the environment by causing waste and stopping the development of alternative forms of energy that have higher equivalent costs. If "speculators" keep prices from falling too low by storing oil for future use when prices are again higher, thus reducing a supply crunch in the future, we owe them thanks. They cannot control price long term, but can effect them in the short run, and we should be glad they can. Planning for the future is generally a good thing, yes?

     

    Thanks for the link to your article. I'm reading it now and will likely refer it to folks who need a primer.

     

    On Jul 11 11:29 AM Tod Ginnis wrote:

     

    > LOL. I was kind of hoping David was being facetious with his plea...
    11 Jul 2009, 03:55 PM Reply Like
  • David Zanoni
    , contributor
    Comments (983) | Send Message
     
    Author’s reply » Although the large speculators/investors may not be able to control the price of oil for an extended period we know that they can control it for brief periods. I also understand how important the alternative energy industry is for the future and how they need oil over $60 to make their projects feasible. What I am looking for is a little help for the economy since we are in the worst crisis since the Great Depression. We can get back to the big alternative energy projects when the world is in a better position. We need a spark for the economy and $30 oil would be a good one for the present time.
    12 Jul 2009, 03:04 PM Reply Like
  • David Zanoni
    , contributor
    Comments (983) | Send Message
     
    Author’s reply » To the respondant who said, "Cheap oil does no one any favors" Where are you living? On Gillian's Island - tell MaryAnn and Ginger I said Hello. Cheap oil affects every consumer who drives a car, buys food, and other consumer goods. It affects most businesses, which in turn affects everyone. I don't expect lower oil forever, I just feel we need it right now as a stimulus.
    12 Jul 2009, 03:15 PM Reply Like
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