Rich people have all this inside knowledge and the power to manipulate the markets at their whim. All you need to do is look at the Hunt Brothers to realize the folly of that POV.
I liken most peoples inability to understand the financial markets to religion. Blaming the rich, and wild conspiracy theories are easier for many people to understand. It wraps complex issues into a nice neat little package that their peabrains can understand.
Oil prices will not rebound to the levels of earlier this year until one of two things happen. Either supply has to be reduced, temporary supply interuptions do count such as war in the ME, or demand must increase to levels that stress supply. Considering the fact that OPEC has just agreed to cut production by 1.5 million BOPD the price is not likely to spike again anytime soon unless there is a supply interuption.
Oil prices will increase again as the world economies recover and growth in countries such as India and China resume. The public has also been lulled back to sleep because of falling prices and SUV's and other gas guzzlers will be back in vogue. None of these events will happen in the next month or two, except perhaps a war.
If Obama is elected and he has a democratic lead house and senate, Oil will be back over $100 a barrel and gas will be back over 3.50 a gallon by Christmas.. I just hope Im wrong..
Don't get me wrong, I am the last person who wants to see Obama in the White House except as a well supervised guest, but I fail to see the connection between an Obama presidency and an immediate rise in the price of oil.
tomorrow, is at least 43 Republican Senators. Although we need 41 to help block legislation, there are always a couple that tend to cross party lines. The market has already factored in Obama winning. Some degree of gridlock would be positive for the markets.
that gridlock is the best we can hope for.
I still don't get how the OP makes the leap of logic that an Obama victory would somehow translate into immediately higher oil prices. I would expect the opposite to be true, for the short term at least.
Right now there is excess capacity in the market due to reduced demand, the only way to cure this imbalance is to either reduce supply or increase demand. While an Obama victory may lead to reduced "American" production over the long term, he will have no effect on production in the short term. Unless the OP's premise is that Obama's election will lead to increased demand, very unlikely IMO, I fail to see the connection.
Like I said I hope Im wrong, I watch the commodities hourly during the week and it is just a gut feeling I have. Im a Reagan-Bush republican I REALLY dont want Obama in the white house.. and OP?
There is no connection.
The poor guy has his acronyms confused; he thinks we are electing the president of OPEC.
my Democrat mom, Republican stepdad, and Independent me ALL agreed that no matter WHO won the election, gas prices would shoot right back up after November. I think we're screwed no matter what.
commodity for that matter. Didn't Goldman Sachs say oil was going to $200 by the end of 2008? Didn't T. Boone Pickens say that oil will not go below $100 just a month ago? How much money has he lost in his hedge fund? How many hedge funds are closing, or have lost a ton of money. A lot of smart rich folks got it wrong big time. At the end of the day the marketplace, not individuals, determine the price of a product or service.
Rich people have all this inside knowledge and the power to manipulate the markets at their whim. All you need to do is look at the Hunt Brothers to realize the folly of that POV.
I liken most peoples inability to understand the financial markets to religion. Blaming the rich, and wild conspiracy theories are easier for many people to understand. It wraps complex issues into a nice neat little package that their peabrains can understand.
Oil prices will not rebound to the levels of earlier this year until one of two things happen. Either supply has to be reduced, temporary supply interuptions do count such as war in the ME, or demand must increase to levels that stress supply. Considering the fact that OPEC has just agreed to cut production by 1.5 million BOPD the price is not likely to spike again anytime soon unless there is a supply interuption.
Oil prices will increase again as the world economies recover and growth in countries such as India and China resume. The public has also been lulled back to sleep because of falling prices and SUV's and other gas guzzlers will be back in vogue. None of these events will happen in the next month or two, except perhaps a war.