Speculation, Oil Hit $100 a Barrel Yesterday, Cracker Jacks.. Ehh Who Cares
Posted: Thursday, February 24, 2011
by David Levitt
Q: What does Cracker Jacks and oil have in common? A: Nothing, absolutely nothing. Cracker Jacks, ehh..take 'em or leave 'em. Oil affects almost everything in our lives, from the price it takes to get the Cracker Jacks to market, to our National security. So why pray tell are the speculation forces not regulated to reflect these differences. Oil hit $100 a barrel yesterday, Cracker Jacks, ehh..who cares?
Speculation alone seems to be by all measurable indicators, driving the increase of the price of oil to levels not seen since early October of 2008. I am already paying higher home gas charges and related fuel costs, because the unrest in the oil producing countries of the world in which we rely on for our crude oil, might experience a shortage in the future.
The natural market forces of supply and demand do not apply to these particular commodities because of the fact that they are necessities for the every day functionality of our lives. Naturally there are many variables that go into this equation, not least of which is our politicians desire to wean us off of this near monopoly on our energy alternatives.
So in my estimation, being as alternatives to this monopoly are not at the top of our leaders to do list, then a closer, more thorough examination and oversight of the speculation that drives these higher prices almost at the whim of our known to be river boat gamblers on Wall Street, should be. The American public should be growing weary of this "just because we can," self serving attitude.This is the ultimate subsidization of the upper tier of the capitalist economy that is clearly being served to the almost willful neglect of those of us that are having to dig deeper and deeper into our necessities for our families pocket to make ends meet. If production and demand go uninterrupted will speculative overcharges go back into our pocket? Uh, no. Our loss is their gain. Sound like a common theme?
When asked about gasoline demand being down and oil and gas storage being plentiful, Amy Myers Jaffe, a fellow at Rice Universities Baker Institute said, "maybe they're a little fast on the trigger on the way up, and a little slow on the trigger on the way down." Consumers are justified in a little pique about how quickly gasoline prices have reacted to the oil prices, she said. That's an expensive trigger.
My beef isn't with the price of commodities, or the speculative nature in which they are driven..ok, maybe a little bit, but with the way speculation effects the price of necessities. If we have little to no choice in our purchases then I believe better oversight should be applied. Oil hit $100 a barrel yesterday, tomorrow what's it going to do to Cracker Jacks? Ehh..who cares?
(Source:) Tom Fowler, Houston Chronicle Business, Thursday, February 24th, 2011
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Top-level comments on this article: (3 total)Speculation drives me crazy, it's such a waste of time and energy. And who ever speculates the best case scenario? I was watching the news the other night - BBC, CNN and SkyNews - and speculation was that oil would hit $220 a barrel because of the Libyan crisis. It didn't do anything of the sort. In fact, it came down, because Saudi Arabia intervened. I love what Amy Myers said. Nice article, David.Thanks Jenn. This is all speculation on my part, but I think they're going to find one way or another to drain our pockets dry.:-)
Oil hit $100 a barrel yesterday, tomorrow what's it going to do to Cracker Jacks? Ehh..who cares? reading it I also laughed but confusedly.
Sir David Levitt, Have you ever workedout the cost of financial aid from America to many dictators Arb world, the expenses of its military bases in areas of oil and war spending is incurred to protect oil interests America ?
With this money, America could do supply oil free to common American by buying at 200$ high price or any high price of oil imagined in the next three decade.
$100 a barrel oil is not acceptable! $1000 expenditure on security of a barrel oil is acceptable!
I am here to understand American higher Mathematics, so for confused.....Guarav, I'm not sure exactly what your asking other than the price of oil should be higher because of the amount of money it costs to protect American oil interests, and I'm sure it would be much higher. But the price of oil charged and what it should be is a matter for the oil interests to determine. I'm sure people are used at slave labor wages to secure it's availability, but all I am addressing in this article is the price they charge the public as opposed to the price that they are paying to purchase it, which is speculating on what it will cost under certain future circumstances that have yet to occur but are charging the higher price for it already. The fact that it should be much higher because of the human sacrifice involved would be another article but not what I am addressing here. Thank you for reading, and the comment sir.Sir, David Levitt, Maybe I'm failing to express and share my views on oil.
1.top six oil consuming countries are said - the United States, China, Japan, Russia, Germany and India.
Lately Oil consumption in China and India are increasing more and destined to become at par with the U.S. during this decade. Oil supply is limited and is the main reason for the increase in oil prices and given the oil price situation will continue until we are ready for it .. The largest 50% expenditure of India is on imports of oil.
2.The exessive smoke of oil consumption worldwide is making the environment polluted and cause illnesses that cause more people expendiure world that rising oil prices. We have to find alternative and live within its limited use.
3.America is a rich country and its people can pay more for oil than the poor of India. But he lost his wealth at the expense of its military bases in areas of oil and war spending committed to protect oil interests in the Arab world. If this fee is split and given as grant to the American consumer, I am sure they would be in a better position to buy oil that most people in India and China can afford.
That's what I want to share with youThank you for clarifying your comments Mr. Virk, and in these conclusions I agree totally. The goal for the solution of the world energy problems should be diversification, and not later but now. The environmental and social pollution, and the economic distress created do not justify it's continued furtherance. Neither is America's costly military efforts around the globe. Good day sir.
David, Cracker Jack? No. Fiddle Faddle? Absolutely! :) Gas prices have gone up nearly 40 cents a gallon in less than two weeks. Is that a concern to me? Most definitely! Thanks for sharing your article.Thanks Danny. They're not Cracker Jacks anymore huh? Guess I'm showing my age.:-) Couldn't afford 'em anyway with the price of gasoline. Just imagine what it's going to be if there really does become a shortage.
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