Who profits from shortage fears?

Prices are above $66 again, on "fears" of a stoppage in production from Gulf of Mexico Oil Rigs because of a Tropical Storm that is yet to be a Hurricane, and has yet to show an accurate track. Who profits from this oil spike if the shortages do not realize?

Much of the oil spike in prices are due to fears of terror, fears of shortages, and fear of new regimes(Saudi Arabia has been run by the same man for eight years, yet when the figurehead King dies, fear drives up prices). For all the fear and aprehension, none of the threats or problems have materialized.

So, if a barrel future sells at $67 instead of $60 because of fear, and nothing happens, who gets the extra $7 ? Is it the speculators or the oil companies? Is this sorta like flipping a house? Buying low and holding then selling high?

The market is not quite right, not at all logical, and the price seems not at all associated with supply and demand. It seems driven on fear, not on supply.

Any insiders with some insight?

[edit on 8/24/2005 by soulforge]

I also believe that the oil prices are largely fear-driven. In fact, I'd say we've reached the point where oil traders are no longer as concerned with realities as they are with any bad scenario that they *think* could *possibly* happen at some point in the future. The tropical storm you mentioned is a perfect example.

The big winners are the same ones selling you the oil doom-and-gloom scenarios: the investment firms. They're making a killing as prices go up, and once these oil prices flat-line the economy, they'll make money when the oil prices crash. Its a win-win scenario in which they thrive off of the volatility that they've created.


[edit on 24-8-2005 by vor78]

the traders generally add $8-$10 to the actual price per barrel. OPEC's price is at $58 right now and one yeare ago it was at $36.05, if I'm reading this right.

www.opec.org...

[edit on 24-8-2005 by Thatoneguy]

I must confess that the fact that oil companies are standing to profit big-time from oil shortage fears is the primary reason that I have come to doubt the entire "peak oil" thesis and to question the origins of petroleum as a "fossil fuel." While the recent articles on this subject on Alex Jones' site and at WingTV have failed to impress me, the Center For and Informed America, run by Dave McGowan, has some excellent essays on the subject of oil's true origins and the agenda behind the "peak oil" scare.
I'm not ready to say that I am entirely comfortable with dismissing the whole notion of "peak oil," but I am actively questioning it. For those interested, I would highly recommend checking out
www.davesweb.cnchost.com...
where you'll find a lot of alternative theorizing and speculation on "peak oil" presented with clarity and comprehension.
All that being said, I beleive the results of the "peak oil" scare phenomenon will be the same whether it is real or an invention of the oil comapnies. Prices will skyrocket, rationing will ensue, and we will be forced to live under the crushing weight of the knowledge that oil is now scarce, the only question is---will the shortage be real or invented whole cloth to increase oil company profits while they sit on top of an ocean of the stuff, laughing all the way to the bank?
---Ryan

But what is classified as a 'shortage' why is there a shortage? And how much is there left? I mean does the average joe really know the figures? I certainly dont? Maybe we have 50 years worth left, or maybe 5? if it were that scarce would there not be restrictions on how much people could actually use?

I don't know just looking for some answers, as it is really impacting hard over here (Australia)

Cost of crude is reflected in oil futures is speculation by traders that profit on the rise of oil that climbs a "wall of worry"...........traders profit here.......

Increasing gas prices are profits realized by the oil manafacturing company's refining capablities.........

Real crude cost per barrel is a profit realized by oil producing nations........

and they have all of us by the short hairs...........

We have been through the 20th century and continue to be at the beginning of the 21st century the "hydrocarbon man"................in a hydrocarbon society.........

Read "the prize" (the epic quest for oil) a great read on the whole industry from Cornel Drake through the first gulf war.........

Most definitely, fear is not in short supply. The few above the many know exactly how to manipulate the market - they've been doing it since 1913 (Federal Reserve Act and the 16th US Amendment) via the Jekyl Island group (Rockefeller estate).

The surge in oil is all an illusion. And the few know, for a fact, that the many will shell out their hard earned "petro"dollars for a gallon of gas that costs those in Saudi Arabia 13 cents a gallon.

The joke is on us friend. Only the masses can change the course of events - there should be big billboards every 10 miles along every interstate highway with Above Top Secret in big bold letters...it's a start, but it must start somewhere where the masses can meet in one place and decide a way or ways to overturn the course of events in the last few decades.

The masses hold the key, all we need now is a compass, a way to point the masses in the right direction.

Only time will tell...everyone has a breaking point...in time, the masses will unite as one in America and say no more!!!!!!!!!!!!!

Thanks for the thread, Edward

During the last big oil crisis, in the early 1970's, oil companies enjoyed similar massive profits to what they are seeing now. A difference, however, is that in the early '70s, the Federal Gov't passed what was called a 'windfall profit' tax, which resulted in higher taxes to said oil companies when they inflated prices. These higher taxes were an incentive for the companies to hold prices down a little bit, or at least to pretend to.

Now, we are seeing the same kind of huge profits for the oil companies, and what is the Federal Gov't doing to help hold down these profits?

(Insert big empty silence here)

Well since this is another case of the richer get richer, and the poorer get poorer. The poorer get poorer, because they need the gas, to power the little car that they use to get to their job, to make maybe, $8-$9 an hour, only to have it be quickly bled at the gas pump, while the oil barrons, and the republicans thrive of this revenue. they are upset that they cant afford that expensive private jet, or that ocean front property, blah blah blah... heres what i have to say to them: SHUT THE HELL UP! work for 1 year, as a middle class person, start with say, $500 get an apartment, get a 9-5 job, and get a toyota or something, see if they can do it. they cant! they too acustomed to the money that they are bleeding the middle class of their income at the gas pump. the average person gets drained twice by the gov't: Income taxes, and at the gas station. yes, i know that gas isnt government regulated, per say, but, bush owns an oil company, and a lot of his homies in high places (ex. Ken Lay) play poker with him now and then