Crude Dynamics

In theory and in practice the Crude Oil market dynamics have changed.

Do you remember when analysts were making excuses for higher crude saying that there was a "Terrorism Premium" inherent in crude and that is why Crude is so high.

That was the truth to someone extent, but now we no longer have talk of this so called "Terrorism Premium".

What happened to it?
Has Islamic Terrorism been slayed?
Or was it just another excuse like Supply/Demand is out of whack?

There are all excuses for Wall Street to run up Crude Oil. Wall Street as well as the CFTC made up any excuse to say that higher crude was because of fundamental factors. The word speculation was never uttered, speculation means manipulation, and manipulation means Wall Street. Don't go there.

www.reuters.com/article/GCA-Oil/idUSTRE57Q4BL20090827"

"Regulators don't and shouldn't talk about trying to influence prices," said John Brodman, a former Deputy Assistant Secretary at the U.S. Department of Energy. "But there's a growing political imperative out there. An oil price rise of $30 a barrel would offset 40 percent of the stimulus spending. That's not what these countries are looking for."

So lower Oil is bad for the stimulus? Yes it is, but isn't the ides of the stimulus to help tax payers and normal citizens to get back on their feet? Lower Gas Prices is the greatest tax benefit that government can give us.

More clueless talk from people who are put in charge of important business's.

There is new talk now that roughly 30% of the price of Crude is in speculation.

Bogus! Try 50%. When Crude was %150, it was 75% speculation.

I am not holding my breathe for the impotent CTFC to make any changes. We need a good old fashioned margin selling induced melt down to get things realigned once again.