Traders go short on Lloyds

[snaw]

Search for a video on youtube "the price of oil" . There is a mention in it that price of oil went up by $20 in one day last year while supply was actually greater than the demand. India and china do not buy so much oil to influence so much price rise in one day. Billions were flowing in oil futures contracts and JP morgan was predicting a pirce of $200.

I don't profess to understand the dynamics of why the oil price jumps $20 in a given day, I'm guessing it's down to speculation. But neither do any of you. Fact is, global consumption is rising. In any market for a commodity increased demand and any impact on supply will mean the price goes up. It's some kind of utopia to imagine it'll stay at $20, or $40 or whatever.

There's a case for regulating oil price more to stop the fluctuation, as we had in recent times as speculators dived into he market and pumped the price. But equally the fact is prices are bound to rise these days. Like it or not.

[DimPrawn]

What makes you think global consumption is rising post the credit crunch?

America is using less oil (they are farked) and China is using less oil as no one wants to buy they're crap products anymore. India does not use much oil.

The oil price has very little to do with supply and demand.

[sasguru]

What makes you think global consumption is rising post the credit crunch?

America is using less oil (they are farked) and China is using less oil as no one wants to buy they're crap products anymore. India does not use much oil.

The oil price has very little to do with supply and demand.

This post is wrong on so many levels that its not worth even starting

[DimPrawn]

This post is wrong on so many levels that its not worth even starting

The oil price has to do with:

Storage
Speculation
The strength of the dollar


Sorry to break it to you guys.

[d000hg]

Hey AtW, why don't we just ban the whole concept of shares in terms of trading - limit them to directors and so on?

[AtW]

I refer you to my previous answer. Did the economies of Asia, or India gobble as much of the stuff in the 90's. Did the economies of the west either, for that matter?

Economies of Asia grown because West shifted productions there - so instead of West buying oil to make stuff, it is now done in Asia.

The increase in overall oil demand (maybe 20%) should not have lead to provide going from $10 in late 90s to $150 last year.

[sasguru]

The oil price has to do with:

Storage
Speculation
The strength of the dollar


Sorry to break it to you guys.

I'm constantly surprised by the level of expertise on CUK. We have experts in all sorts of esoteric areas: global warming, oil prices, short-selling etc etc.

And our experts are so modest as well, most of them are happy to work as code monkeys for a relative pittance.

[snaw]

What makes you think global consumption is rising post the credit crunch?

America is using less oil (they are farked) and China is using less oil as no one wants to buy they're crap products anymore. India does not use much oil.

The oil price has very little to do with supply and demand.

Go google it. It's getting back to similar levels, and predicted to go past it sometime next year.

Well read indeed.

[AtW]

Hey AtW, why don't we just ban the whole concept of shares in terms of trading - limit them to directors and so on?

That would be wrong - read what I said, I don't advocate banning of shares or stock market - only making sure that all activity in it is long term and get rich is aligned with real wealth generation: with all that huge money in the City for the last 20 years, do you see many new companies appearing from nowhere like Intel, Google etc?

The matter of fact is that in this country the City is not financing jack all - unlike USA where they actually have VC capital and real investment takes place, there is also speculation as well, but in the City this is dominant, thanks to lax controls of the Govt.

[DimPrawn]

I'm constantly surprised by the level of expertise on CUK. We have experts in all sorts of esoteric areas: global warming, oil prices, short-selling etc etc.

And our experts are so modest as well, most of them are happy to work as code monkeys for a relative pittance.

It might go to explaining why your are an Aygo owning permie dreaming of a shed and I'm very nearly a millionaire.