Is Oil Speculation Responsible for High Gas Prices?

• “No”

  

  “Market Fundamentals Most Important Factor in Current Market”

• No Objections Yet

Market Fundamentals Most Important Factor in Current Market

New York Mercantile Exchange

Commodity Futures Exchange

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Currently, uncertainty in the global crude market regarding geopolitical issues, refinery shutdowns and increasing global demand, as well as devaluation of the U.S. dollar, are clearly having an impact on the assessment of market fundamentals.  One may view such factors as contributing an uncertainty or risk premium to the usual analysis of supply and demand data.  Such factors may now fairly be viewed as part of the new fundamentals of these commodities, and are attributable to the rise in oil prices.  Further, other demand and supply fundamentals in the oil markets are factors in high oil prices.  For example, global demand is exceeding supply by one million barrels per day.  As a result, a market with highly inelastic demand will need to equilibrate through a substantive rise in price.  Therefore, the demand and supply fundamentals in the oil markets continue to be the driving factors in high oil prices.

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"No" NYMEX

• Speculative Activity on Exchanges is Managed by Position Limits
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• Analyze the Data
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• Market Fundamentals Most Important Factor in Current Market
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• Demand Continues to Grow, Supply Remains Relatively Constant
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• There is No Conclusive Data that Speculators are Driving Up Prices
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"Yes" Public Citizen

• Speculation is Knocking the Supply-Demand Fundamentals Out of Whack
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• Energy Traders Buying Up Physical Oil Assets in Manipulation Bid
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• Real Solutions For a Real Problem
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"Yes" Consumer Federation of America

• Lack of Regulation Has Cost Oil Consumers Billions
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• Market Fundamentals Alone Do Not Explain the Current High Prices
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• There is a Large Speculative Premium in the Price of Oil
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• If Fundamentals Did Not Change, We Have to Find What Did
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• The Link Between Trading and Rising Prices
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• Regulatory Reform is the Way to Solve the Problem
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Most Objections

Speculation = High Gas Prices?

• Yes
• No

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