Jun 26, 2008 12:22AM GMT
Question
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Politics - United States
Gas could fall to $2 if Congress acts. Should congress act now and take the risks?
According to analysts, the price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress. Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135. Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets. Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets. "Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."The bill was introduced in June 11. There are two kinds of speculators in the futures markets, Masters said. Traditional speculators are those who need to hedge because they actually take physical possession of the commodities. Index speculators, on the other hand, are merely allocating a portion of their portfolio to commodity futures.
Index speculation damages price-discovery mechanisms provided by futures markets, Masters added The committee will likely consider legislation that would rein in index speculation by imposing higher-margin requirements; setting position limits for speculators; requiring more disclosure of positions; and preventing pension funds and investment banks from owning commodities. Both major presidential candidates have supported closing loopholes that encourage speculation in the energy markets.
http://www.marketwatch.com/news/story/gas-could-fall-2-if/sto...
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Answered Undecided
While I believe both that higher fuel prices are hurting the economy and that the speculation of futures markets is unjustifiable market tampering which only benefits the wealthy while riping off the average consumer, I believe congress should let us sit in the mess we created and suffer. We are like a group of junkies trying to score an easy fix. It is time to quit the habit.
Fuel prices are having a severe impact on my monthly budget. It is to the point that in October I am going to move closer to work and walk to my job. While I know this is good for the environment, I would not be planning to make this change if not for the price of fuel. I believe in the next 1-2 years the demand for fuel will decrease world wide. I know many analysts and media members think this is unlikely but I believe there are two reasons for this change. First, many Americans and Westerner experiencing the hicked prices are making lifestyle changes. As prices continue to increase these changes will increase also. Second, in the developing world demand has been sustained by government subsidization. As prices increase these substidizes will be too expensive to maintain. We can be sure when consumers in China experience market prices, their use will decrease. -
Answered Undecided
Get reall the day's of $2.00 Gas are over! Won't ever be seen again in my life time . Maybe $3.85 But $2.00 Nope the oil companies now know people will pay thrue the nose. And we still have an oil man cow boy in the white house! this is another lie to gain votes for the repblican Party McCain. . people the republicans are controling this so they can drill more wells . Wake Up this is a lie . They reported we have enough oil in are reserves to last 100 years or more. This is all about bush getting his way because he was told NO! So now we are getting a big Baby holding his breath and Higher gas prices at the pumps. Oil was never an Issue . Untill the republicans and Bush were told No they could not drill in alaska. Them suddenly the hole indestry was going to pot Its a huge spead lie through Paid Media and Mass hastarya as people see there pay checks getting sucked away at the pumps. Yep! but some of you Idiots will put mccain down for your vote because he says he will save the country. You need to ask who He's really working for? Ill give you a Hint its not you or I he just wants your Vote then he will wipe is back side with you! Oh and he's not saving you from Any one with a terbin towell on there head! Those folks have done there damige by terring us apart as a country. They don't need to attack us we are doing just fine on that front with Bush and Cheney killing our Costitution! Who McCain is really working for i
s a guy with big ear's and a guy with evil smirk and Ho...
Get reall the day's of $2.00 Gas are over! Won't ever be seen again in my life time . Maybe $3.85 But $2.00 Nope the oil companies now know people will pay thrue the nose. And we still have an oil man cow boy in the white house! this is another lie to gain votes for the repblican Party McCain. . people the republicans are controling this so they can drill more wells . Wake Up this is a lie . They reported we have enough oil in are reserves to last 100 years or more. This is all about bush getting his way because he was told NO! So now we are getting a big Baby holding his breath and Higher gas prices at the pumps. Oil was never an Issue . Untill the republicans and Bush were told No they could not drill in alaska. Them suddenly the hole indestry was going to pot Its a huge spead lie through Paid Media and Mass hastarya as people see there pay checks getting sucked away at the pumps. Yep! but some of you Idiots will put mccain down for your vote because he says he will save the country. You need to ask who He's really working for? Ill give you a Hint its not you or I he just wants your Vote then he will wipe is back side with you! Oh and he's not saving you from Any one with a terbin towell on there head! Those folks have done there damige by terring us apart as a country. They don't need to attack us we are doing just fine on that front with Bush and Cheney killing our Costitution! Who McCain is really working for i s a guy with big ear's and a guy with evil smirk and Horned rimed glasses.
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Answered Yes. People don't care about saving the environment they care about saving their own money.
The exact same thing happened in the 70's and it will happen again. When gas gets cheap you'll see the F150 be #1 again and people realizing how ridiculous they look in a Yaris.
Answered Yes. People don't care about saving the environment they care about saving their own money.
The exact same thing happened in the 70's and it will happen again. When gas gets cheap you'll see the F150 be #1 again and people realizing how ridiculous they look in a Yaris.