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Re: Was releasing oil from the S Oil Reserve

By: Cactus Flower in ALEA | Recommend this post (0)
Fri, 24 Jun 11 3:55 AM | 70 view(s)
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Msg. 05425 of 54959
(This msg. is a reply to 05424 by tkc)

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Hi tkc,

I agree. But it would be better not to have governments intervene in the market but to have rules which prevented the excesses. As I understand it, the financial companies are able to influence the supply of oil and bet on the resulting price. Hard to lose that bet, except if you run a car.


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The above is a reply to the following message:
Was releasing oil from the S Oil Reserve
By: tkc
in ALEA
Fri, 24 Jun 11 3:46 AM
Msg. 05424 of 54959

a good or bad idea? Watching the political spin has been interesting, from both sides. What I haven't heard is the impact on oil speculators. It seems to me that it sent a strong message: if you want to speculate (not hedge) beware that if the reserve is tapped again, and you'll never know, then you'll lose. From that stand-point I like it. I think it will hamper speculation that prices will increase, thus assist the potential for price stability. Additionally, it will spur consumption.


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