Is Oil Price Fabricated or Real?

[dbelov275 11]

There is a speculation going on now, that the price of oil is highly fabricated. What is your thought on this matter?

[vladtitov151 10]

Well it depends what you mean by "FABRICATED". I am not sure what “Fabricated” means in this question regarding oil prices. If it means the price of oil is being manipulated then the answer is definitely yes. One of the largest oil producing countries, Saudi Arabia, is intentionally pumping as much oil as it can with the expressed intention of destroying the American oil fracking production companies. Fracking in America produces oil at a minimum price around $50 per barrel. So long as the world price stays below that it is not profitable to drill more wells using fracking and horizontal drilling in America.

[dbelov275 11]

Okay. Thanks. but If the notion of this question is that someone with a lot of money is manipulating the market by buying or selling oil as a speculation to make money, then what would be your say about it?

[vladtitov151 10]

Then I would say no. Daily oil production world wide is around 80 million barrels. At $50 per barrel this is a cash flow of 4 billion dollars per day. With economic activity this large it is hard to conceive of an individual or company that has enough money to manipulate the price of oil in any significant way. Only a few countries in the world have sufficient quantities of money to have an impact on the price of oil and they have other things to do with their money.

[dbelov275 11]

This is my stand, you can correct if i am mistaking. I would not agree that the price is currently being manipulated. What several of the national oil companies (NOCs) are doing is driving to maintain or improve on their market share with multiple intents. 1. Keep up their income to balance their country budget 2. Eliminate some of their competition 3. Try to regain their ability to control oil prices.

 

As of today, the only success they have had is bankrupting the higher priced operators in the US and putting several others into financial trouble. The surplus has not diminished significantly but has only moved from crude to refined products as refiners bought up cheap oil as fast as they could process it.

 

The driving public is loving it with the common pricing being in the $2 a gallon Range. The over 2 million folks who have lost their jobs would tend to disagree.

 

As the market continues to see still high production and slower increasing consumption than expected, confusion will continue to reign and nobody, but nobody can tell you what will happen with the prices tomorrow, next week, next month, next year or next century. The only guarantee is it will go up and it will go down, sometimes for a real reasons and sometimes on rumors of rumors. What do you say?

[vladtitov151 10]

It seems that the oil price is manipulated. Futures trading has taken two stances on forecasting oil prices and they seem to sober up short term price rallying. This to a lesser extent dampens the blow on the market each time it plummets. The categories as below are 1) Commercial: this being the norm for futures trading as the price will be fixed over a few years.

 

The second position 2) Non Commercial is aimed at identifying market changes as influenced by lucrative hedge funds in the short term. These hedge funds were the primary reason for the shale oil boom initially causing large oil producing nations such as Saudi Arabia to crank up production. So keeping an eye on high value investments over the short term in this area acts as an indicator of fracking activity.

 

In addition to this you also have to consider existing crude stock availability, draw down and procurement activity. Regional tension and geopolitics adversely effect oil prices and as such there is a tendency to exaggerate market reaction. It's analogous to flying a jet fighter aircraft with one hand on the ejection handle.

[dbelov275 11]

I wouldn’t put it exactly in that way. The price of oil may be based on availability, but our perception of the ‘value’ of the oil is influenced by the speculators who announce their opinions as to how much oil will likely be traded in the future. This is influenced by their perception of what is likely to happen next. Oil is oil. It cost no more to be drilled and poured in barrels than it did the day before.

 

Here’s a simple example: news of imminent war in an oil producing area, no mater how small, is a signal to buy oil before the event actually occurs and the price goes up. The cost of gasoline at the rack is the same today as it was yesterday, but the selling price at the rack and on the street goes up immediately. This creates a buy or sell event depending on the traders situation, and producers, traders and retailers see it as a chance to make a lot of profit. Imagine that you have 6 million gallons in your tanks that is suddenly worth 10 cents per gallon more than it was the day before. Suddenly you are $600,000 richer. It’s better than winning the lottery.

 

“Prices are going up”, and consumers fill their tanks all at once, regardless of the fact that they will not use any more gas in a week than they normally would. The sellers response is to raise their prices even more and buy more fuel. It doesn’t take long before the “war” doesn’t happen, or if it does start, it is possible that the US refineries don’t even purchase oil from the affected areas.

 

In response to the sudden increase in the purchase of gasoline, the refineries increase their production to replace the product that is being rapidly depleted at the tank farms. Once the bogus scare is over, fearing the storage tanks will burst at their seams, the producers drop the price of gasoline rapidly to make room for the abundance of gasoline being produced, else they face the danger the refineries will have to be shut down, which will take as much or more than a million dollars just to start up again. This is worsened by the fact that retailers will hold off purchasing more fuel and subscribe to a plan of running their tanks as low as possible.

 

Now the retailers have the other problem. With their tanks filled to capacity, they may suddenly find themselves $600,000 poorer, so they drop their prices rapidly, else they will be caught with much more expensive fuel and be selling what they have at a loss. If the price drops for long enough, and retailers have not planned for this inevitable situation, many will go out of business.

[zdo 20]

EVERYTHING IS RIGGED.

 

One could argue that Energy is still driven by supply and demand considerations. But in a trade, both things exchanged need to be authentic. If the currency being used to exchange for oil is 'fabricated'... then the price of oil and everything else is not and cannot be really discovered by the 'market' .

 

You may or may not have been around for the last thirty years and if you have, maybe you haven't noticed the gradual deterioration in authentic price discovery. I have. The degradation was gradual through the early 90's, accelerated some in the late 90's, and has hockey sticked since. Money supply gone mad, interest rates centrally 'controlled', outright price manipulation via derivatives, gov't agencies picking the winners and losers ... drip.. drop... cascade to total corruption. Stock pricing symptoms at http://www.zerohedge.com/news/2016-08-04/mind-gaap-study-links-excessive-earnings-addbacks-accounting-issues

 

EVERYTHING IS RIGGED.

 

Every institution in America is sold out, corrupted and politically rigged to favor Big Government and Big Business. "America is a lost country," explains Paul Craig Roberts. "The total corruption of every public and the private institution is complete. Nothing remains but tyranny. And lies. Endless lies."

 

CNN, Reuters and the Associated Press are all now shameless promoters of every big lie across every sector of society, from vaccines and GMOs to elections and politics. The federal government itself is incapable of doing anything other than lying, and it has totally corrupted the entire realm of science by pulling the strings of funding via the National Institutes of Health and the NSF.

 

The FDA is entirely corrupt, as is the USDA. Both function now as little more than marketing propaganda pushers for Big Pharma and Big Biotech. Similarly, Google, Facebook and Twitter are all rigged, too, censoring the voices they don't want anyone to hear while highlighting the establishment lies they wish to promote.

 

 

 

 

Here's what "rigged" really means... the tools of tyranny

When I say "everything is rigged," what does that mean, exactly?

 

• All "official sources" are ordered to constantly lie about everything, weaving illusions to push a chosen narrative rooted in fiction (from "there are no Islamic terrorists" to "carbon dioxide is poison to the planet").

 

• All voices of reason and sanity are silenced. Only the most insane, irrational voices are allowed to be magnified through any media (including social media). This is also true across the sciences, where real science has been all but snuffed out by political agendas (biosludge, GMOs, glyphosate, mercury in dentistry, etc.).

 

• All facts are obliterated by propaganda. Facts have no place in any debate, and those who invoke facts are shamed and silenced (or even fired from their jobs, expelled from their schools or bullied into a state of suicide on social media). Anyone who invokes facts on things like the actual statistics of police shootings is told they are "part of the problem" because they have the "wrong attitude" about social justice.

 

• Every branch of government is weaponized against the people and used as an assault tool against political enemies who threaten the status quo. (IRS, FDA, FTC, DEA, EPA, USDA, etc.)

 

• All science is distorted into absurd, politically-motivated conclusions about everything the government wants to use to control the masses: Vaccines, climate change, GMOs, fluoride, flu shots, chemical agriculture, carbon dioxide and so on.

 

• Every branch of medicine is hijacked by globalist agendas to make sure medicine never makes anyone healthier, more alert or more cognitively capable of thinking for themselves.

 

• Every "news item" that's reported from any official source is deliberately distorted to the point of insanity, turning many facts on their heads while attacking anyone who might offer something truly constructive to the world. (Such as reporting that Clinton was "cleared" by the FBI when, in fact, she was indicted by the very facts the FBI presented!)

 

• All voices of truth are silenced, then replaced by meaningless, distracting babble (Kardashians) or meaningless, tribal sports competitions (the Rio Olympics). The point is to dumb down the entire population to the point of cultural lunacy.

 

• Any true reports that contradict any official narrative are immediately censored. For example, radio host Michael Savage just got blocked by Facebook for posting a true story about an illegal alien who committed murder in America.

 

• Emotions are used as weapons to manipulate the masses. For example, when the mom of a Benghazi victim shares her grief with the world, she is ridiculed and shamed. But when a radical Muslim father who's trying to bring Sharia Law to America attacks Trump by expressing his loss of his soldier son, the media turns him into an instant celebrity, praising his "courageous voice" for daring to speak out. The media hypocrisy is enough to make you vomit...

 

 

What exactly is rigged?

• The entire mainstream media

• Google search engine and Google News

• Facebook and Twitter

• The DNC and the RNC (both 100% rigged by globalists)

• Every federal agency (EPA, FDA, etc.)

• The entire justice system (makes a total farce of real justice)

• Interest rates and the value of the money supply (central banksters)

• Academia (all public universities)

• EPA's "safe" limits on pesticides (all rigged by Big Biotech)

• Food and food labeling (all run by corrupt food companies)

• Public education (rigged into Common Core anti-knowledge idiocy)

• Banking and finance (all controlled by globalists)

• Government economics figures and statistics

• Medicine and pharmaceuticals (rigged to maximize profits)

• Big Science (totally rigged by government agenda pushers)

• The music industry (most top singers can't sing at all)

• Weapons manufacturers and war corporations

• The illegal drug trade (it's run by the government)

• Political elections (all 100% rigged at the federal level)

• Political polls (now rigged by Reuters, too)

• The health insurance industry (rigged by Obamacare)

• College admissions (legally discriminates against Whites and Asians)

• 9/11 and domestic terrorism (all rigged "official stories")

• Oil and energy industries

• The rule of law (rigged in favor of the rich and powerful)

• Infectious disease and the CDC (a constant stream of lies)

• Hollywood (all run by globalists)

• Climate change science (all a grand science hoax)

• Press release services (they only allow official narratives)

• History (what you are taught is mostly a lie)

• Government grants (only given out to those who further the agenda)

• Government bids (only awarded to those who kick back funds to corrupt officials)

• Consciousness and free will (we are all taught consciousness doesn't exist)

• Ethnobotany (medicinal and spiritual use of healing plants)

• Life on other plants (the obvious truth is kept from us all)

• The origin of the universe (the official narrative is a laughable fairy tale)

 

As a fantastic example of how everything is rigged, consider these paragraphs from this Breitbart.com news story published today:

 

Over the weekend and for the past few days since Khan spoke alongside his wife Ghazala Khan about their son, U.S. Army Captain Humayun Khan, who was killed in Iraq in 2004, media-wide reporters, editors, producers, and anchors have tried to lay criticism on Trump over the matter. They thought they had a good one, a specific line of attack that pitted Trump against the military—and supposedly showed him as a big meanie racist in the process.

 

But, as Breitbart News showed on Monday midday, that clearly was not the case. Khizr Khan has all sorts of financial, legal, and political connections to the Clintons through his old law firm, the mega-D.C. firm Hogan Lovells LLP. That firm did Hillary Clinton’s taxes for years, starting when Khan still worked there involved in, according to his own website, matters “firm wide”—back in 2004. It also has represented, for years, the government of Saudi Arabia in the United States. Saudi Arabia, of course, is a Clinton Foundation donor which—along with the mega-bundlers of thousands upon thousands in political donations to both of Hillary Clinton’s presidential campaigns in 2008 and 2016—plays right into the “Clinton Cash” narrative.

 

America's transformation into Communist China is nearly complete

If you're pondering where all this is headed, look no further than Communist China, where all independent news has been outlawed by the state. Political prisoners across China have their organs harvested to enrich black market organ traders, and nearly one out of every three urban citizens is a secret spy who snitches on friends for the totalitarian communist government.

 

Hillary Clinton is the embodiment of Communist Chinese totalitarianism. She's such a perfect fit for their disastrous model of human rights abuses, government corruption and systemic criminality that I'm surprised she doesn't live in Beijing. If Clinton gets elected, America is gone forever, replaced by a criminal regime of totalitarians who violate the RICO Act as a matter of policy.

 

If this entire rigged system of biased media, Facebook censorship, Google search result manipulations and twisted science ends up putting America's most terrifying political criminal into the White House, it's lights out for the American we once knew. Almost immediately, the nation fractures into near Civil War, with calls for secession growing unstoppable as state after state seeks to escape the political wrath of an insane regime of D.C. criminals and tyrants. #TEXIT

 

We now live in two Americas: Half the country is tired of everything being rigged, and the other half can't wait to be exploited by yet another crooked leftist LIAR who rigs everything

America is now essentially two nations. On one hand, we have the pro-Trump America, filled with people who are tired of being cheated, censored, punished, stolen from and lied to about everything under the sun. Donald Trump supporters are people who realize everything is rigged... and they're demanding an end to the corruption and criminality of the fascist system under which we all suffer today.

 

Hillary Clinton supporters are people who are too busy chasing political rainbows to realize everything is rigged. They still believe the lies and the propaganda (the "hope and change" that never came, but is still promised by empty politicians). They're living in fairy tale delusional worlds that have been woven into their gullible minds by the skillful social engineers of the radical left. These people still think the government cares about them... or that CNN only reports truthful news. They can't wait to see another globalist in the White House because they are pathetic, weak-minded empty shells of non-consciousness who are wholly incapable of thinking for themselves.

 

These two camps of Americans can no longer coexist. They have almost nothing in common when it comes to knowledge, wisdom, ethics, morals or philosophy. One camp believes in the rule of law (Trump); the other camp believes that people in power should be above the law (Clinton). One camp believes in states' rights and individual liberty (Trump) while the other camp believes in the consolidation of totalitarian power in the hands of a centralized, domineering government (Clinton). One camp believes in a level playing field, free market competition and rewarding innovation and hard work (Trump), while the other camp believes in free handouts, government "equality" mandates, and the ludicrous idea that "there should be no winners or losers in society." (Clinton)

 

In other to try to win this election, the Clinton camp has already rigged EVERYTHING from the very start, including the coronation of Hillary, the scheduling of televised debates to minimize their viewership, the surrender of Bernie Sanders to the DNC machine, the mass organization of illegal voting schemes to make sure illegal aliens vote in November, and so much more. No doubt they're also working extremely hard to rig the black box voting machines all across the country.

 

 

Learn more: EVERYTHING IS RIGGED: Medicine, science, elections, the media, money, education, search engines, social media... you are living in a fabricated fairy tale - NaturalNews.com

 

If you're tired of everything being rigged, this November vote against the rigged system by voting for Donald Trump. This is truly your last chance to save America from being overthrown by a totalitarian regime of criminals who will crush every last iota of freedom and liberty in America.

 

:haha:of course zdo thinks that trump is complicit in the 'rigging' ... watch him 'give it away'

welcome to venuswela

across the pond... welcome to bulgria, iotaly, grease...

 

ya'll have a great weekend

 

zdo

 

Of Two Minds - Revealing the Real Rate of Inflation Would Crash the System

Of Two Minds - What Happens When Rampant Asset Inflation Ends?

Edited August 5, 2016 by zdo

[jpennybags 11]

If you're tired of everything being rigged, this November vote against the rigged system by voting for Donald Trump. This is truly your last chance to save America from being overthrown by a totalitarian regime of criminals who will crush every last iota of freedom and liberty in America.

 

I am amused...

 

I will toss away my vote this election cycle and go with the libertarian party for president (my mind is made up). Libertarians: "conservatism without all the bullshit". I'm even amused at my own statement, in this single regard...

 

Has there ever been a time when "it" wasn't "rigged"? The entire argument is rigged, and it's rigged by you (me). You (we) are getting played, and it comes with our own ignorant bias (simple mindedness) that can be exploited. It has never been any different; it will never be any different. That is politics...

 

So... back to the OP. Are oil prices manipulated... well yes, you ignorant fuck (what else would you expect). My advice is the same though... trade it as you see it... it's as close to freedom as you will ever get.

[dbelov275 11]

I do not believe that is the case. For so many years OPEC enjoyed a virtual lock on the supply of oil. This also gave them the ability to control prices. This is no longer the case. There are so many rogue nations if you will that are pumping oil with reckless abandon. There is a huge glut in oil above the ground. This is what is causing the price to remain so low. Believe me the nations that have relied on oil for there extravagant lifestyle ( mainly the Arab states ) are desparate for 80 to 100 dollar oil again. As is Venezuela, Nigeria, Mexico and Russia.

[dbelov275 11]

I forgot to add, all this simply for a campaign for trump? Simply ridiculous. Trump will not change a thing, he will simply make them worst.

[vladtitov151 10]

I may be in the camp of those that think that oil price is fabricated, however, I don't think Trump is the answer. He is just a loud sounding gong. I hope he don't win cos i believe things would get worst.

[jpennybags 11]

I do not believe that is the case. For so many years OPEC enjoyed a virtual lock on the supply of oil. This also gave them the ability to control prices. This is no longer the case. There are so many rogue nations if you will that are pumping oil with reckless abandon. There is a huge glut in oil above the ground. This is what is causing the price to remain so low. Believe me the nations that have relied on oil for there extravagant lifestyle ( mainly the Arab states ) are desparate for 80 to 100 dollar oil again. As is Venezuela, Nigeria, Mexico and Russia.

 

I don't trade oil, so possibly I should hold my tongue. Though, much like "the Donald" I only need to know a little to speak my mind (ignorant fuck that I am)...

 

The price of anything can be manipulated for a time. This can occur either through collusion in one form or another, or the size of the player(s) in the market. In the end though, supply and demand is the main driver of price.

 

In my opinion, everyone would be happier with price at $80.

[zdo 20]

I forgot to add, all this simply for a campaign for trump? Simply ridiculous. Trump will not change a thing, he will simply make them worst.

 

if you thought my post was promoting trump or insinuating he would 'solve' anything - please think again