tjg

Incorrect Media Speculation About Those Oil Speculators

The last comment is one that all who ardently defend the markets should keep in mind to ensure there is some humility to their hardened positions. Enron was a market manipulator, and could be so because they controlled the trades of energy. I also think that small traders can drive up price. Though it may be heresy as a capitalist like me to say so, I believe that part of the ".bomb" bubble was driven by numerous people working on the margins of the market answering every increase in stock prices of certain darings that were otherwise unsubstantiated by buying long. Potentially, somewhere in the of Enron and little old men day traders lies Vitol making it worth a look.

I am tired of hearing oil mouth pieces working so diligently to convince everyone that its all about supply and demand, and that the oil companies are only earning reasonable margins. While both may be true, neither explains more than doubling the price in a year on top of prices that were already wratched up. demand has not increased in that kind of proportion, and oil companies are less worried about margin than they are return which are up 2x or 3x each quarter of the last 6. Hopefully, the gig is finally up with the attempts to shed some light in the dark places.

After all, even econ 101 teaches markets are most efficient where there is the greatest transparency. Commodities in general and oil in particular are certainly not as transparent as they need to be.