Gas could fall to $2 if Congress acts..

[MacUser]

http://www.marketwatch.com/news/story/g ... aspx?guid={2673C102-68E0-41D9-9C9A-10EE2E723948}&dist=MostReadHome

Gas could fall to $2 if Congress acts, analysts say
Limiting speculation would push prices to fundamental level, lawmakers told.

WASHINGTON (MarketWatch) -- The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.
"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."

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Here's yet another gas reducing idea worth posting.

[Paully_44]

I speculate that if this passes the speculators will find something else to speculate about keeping the oil companies profits fat.

[A2JGirl]

Ok, could someone please explain this speculation business? I'm trying to understand this and it's greek to me.

[Full Quiver]

THe Dems are on the right track and this will bring immediate relief. The GoP is in deep doo-doo because they are still screaming let's drill because oil supplies are short; hogwash

[one love]

THe Dems are on the right track and this will bring immediate relief. The GoP is in deep doo-doo because they are still screaming let's drill because oil supplies are short; hogwash

you dont feel we have to drill and have more of our own oil and stop paying those that pay the ones that are fighting us?

[one love]

what was there plan the article does not pull up.....

[Full Quiver]

The commodities markets are all but unregulated. Speculators are buying oil at a reasonable price and reselling it at $140 a barrel. They never even touch the product so it is pure profit for them.

If we start drilling in Alaska today, which I am all for, and get oil out of the ground and to the pumps tomorrow (yes, I know this is not possible) then the price will not fall. Why? We live in a capitalistic society and the market will set it's own price. Right now speculators are part of that market and whether there are a billion barrels for sale or a trillion barrels for sale these greedy you know whats are going to turn one serious profit unless they become regulated. Normal supply and demand does not apply to a worldwide oil market. The GoP is acting like there is an oil shortage; their is not. I pumped $100 worth into our family van today with no problem.

[EagerBeaver]

The only logical solution is to get away from anything to do with oil.

We're America, we're innovative -- let's put some of that American ingenuity to good use and come up with something better.

[dolfan]

A2J, ever play the game called "Pit"? It is a chaotic game that I cannot stand, but it is a board game and it is a commodities trading game.

Essentially, commodities speculation at its simplest is buyers and sellers meeting and competing for future deliveries of goods. The highest bidders get the rights. But, they don't take delivery of the goods; instead, most of them sell the rights they've bought on borrowed down payments. They pay at delivery. Only, before delivery, they turn around and sell the rights to a third party for a profit. To ensure they don't lose their shirts, they hoard up what they've bought and squeeze supply. That way, the ultimate users don't have much to select from and they have to pay the higher prices demanded by the speculators. Speculators sell for the profit, then pay the commodity provider on the delivery date at the earlier agreed upon price, pocketing the difference.

That's a vast oversimplification. Look here for a better explanation.

[A2JGirl]

A2J, ever play the game called "Pit"? It is a chaotic game that I cannot stand, but it is a board game and it is a commodities trading game.

Essentially, commodities speculation at its simplest is buyers and sellers meeting and competing for future deliveries of goods. The highest bidders get the rights. But, they don't take delivery of the goods; instead, most of them sell the rights they've bought on borrowed down payments. They pay at delivery. Only, before delivery, they turn around and sell the rights to a third party for a profit. To ensure they don't lose their shirts, they hoard up what they've bought and squeeze supply. That way, the ultimate users don't have much to select from and they have to pay the higher prices demanded by the speculators. Speculators sell for the profit, then pay the commodity provider on the delivery date at the earlier agreed upon price, pocketing the difference.

That's a vast oversimplification. Look here for a better explanation.

A vast oversimplification is exactly what I needed. Thanks! I understand perfectly now.

It's ridiculous that it's not regulated! No WONDER! Now I'm really mad.

[MacUser]

Deregulate so we can get our own. Beam me up scotty.

[Ilovebigcats]

The only logical solution is to get away from anything to do with oil.

We're America, we're innovative -- let's put some of that American ingenuity to good use and come up with something better.

*chanting*

Water! Water! Water! Water! Water!

[EagerBeaver]

The only logical solution is to get away from anything to do with oil.

We're America, we're innovative -- let's put some of that American ingenuity to good use and come up with something better.

*chanting*

Water! Water! Water! Water! Water!

Hydrogen, exactly my thoughts. It's renewable too...we're gonna run out of oil.

[Paully_44]

Hydrogen, exactly my thoughts. It's renewable too...we're gonna run out of oil.

I'd like to see the technology of the Flux Capcitator researched so we can use garbage to run our cars. The only draw back is going over 88mph.

[MacUser]

If it can't pour into my existing engine and make it run.. it's not going to impact anything. Take a moment and think of all the existing infrastructure.

I personally own a 50 year old car.

Drill, drill, drill. Forget Green.. Go Black. Texas tea! Polar Bear poo.