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View Diary: Exxon CEO: Oil Price is 9x Higher than Production Cost (75 comments)

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  •  You just wrote a paragraph explaining, (1+ / 0-)
    Recommended by:
    Sparhawk

    quite clearly actually, the reason that the speculator plays an important role in the oil market. So you can argue that his take-home is too high, but you cannot argue that he doesn't provide a service. Your very words prove he does.

    I'm in the I-fucking-love-this-guy wing of the Democratic Party!

    by doc2 on Sun May 22, 2011 at 10:23:17 PM PDT

    [ Parent ]

    •  Ok, (2+ / 0-)
      Recommended by:
      grover, semiot

      so now you've gone from arguing that futures prices can't affect spot prices to saying that speculators provide an important service. No. If the speculators weren't hoarding, the futures/forward market would still function as a hedging market because buyers could still enter into futures/forward contracts with the original producers. In fact that's the way it traditionally worked until Wall Street got involved.

      "It is, it seems, politically impossible to organize expenditure on the scale necessary to prove my case -- except in war conditions."--JM Keynes, 1940

      by randomfacts on Sun May 22, 2011 at 10:29:47 PM PDT

      [ Parent ]

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