BINGO !!! re: Lee Raymond of XOM["He only implied that other factors in the market were driving prices higher than supply."]
- WHODATHUNKIT ?!?!?!
And why did he and other Big Oil's divest their Chinese relationships ?
- duhh.
And not that this concept isn't still going to go in one ear & right out the other; for 99% of threadsters here.
But, here's another clue for the clueless:
Oil has been, is presently and will continue to be "manipulated" by the USA who is using the Price of Oil as a very effective Economic & Geopolitical "weapon" vis a vie China.
The USA has the Saudi's and the Middle East OPEC Producers "balls" in one hand (via our Military presence in Iraq and our bases in Saudi & elsewhere)and we've got their Oil Supply's firmly in the other (much to the chagrin of China) and the Saudi's via both what they publically "say" and what they actually really "do"...are being very good puppets of the Bush/Cheney Military-Defense/Oil Complex.
So, here's some more - "whacko, Stratfor-rag, Oliver Stone-esque conspiracy theory gibberish" - I know you people don't think any of this exists - so let's just go straight to what is public vis a vie actual bills being introduced by Congress - straight from the horses mouth:
re: The Chinese Currency Manipulation Act:
google.com
Oil is being used as a Geopolitical Weapon to twist China's Arm to:
1. Re-peg...then ultimately free float their currency.
2. To come to the table and adopt free & fair trade policy's.
3. To stop their Sabre Rattling towards Taiwan & Japan; their Nuclear & Missile Technology support of North Korea, Iran etc.
4. To more effectively manage their growth, consumption & strategic acquisition of commodities as to not upset the economic and geopolitical balance in the world.
As I've said for a while; Oil is not presently trading upon it's underlying "real" fundamentals... nor is it going to be; in the future.
Oil will not go to $85, nor $105 because of any of the reasons Matt Simmons,Don Coxe or the Nobel Prize Winning Economists on this thread have been alluding to.
Yes; PEAK OIL and Hubberts Peak are real...and certainly what Matt Simmons has been saying for the last 3 Boom to Bust Oil Cycles (along with late comers to the party like Don Coxe, who are now jumping on the bandwagon) will someday come true...and it has been usefull to help the Bush/Cheney Energy Policy adopted and to focus the will of US Politicians, Business and the People; on a very real pressing issue that MUST be addressed now and not 10 years from now...when it finally does become reality.
Oil is not fundamentally supported at $55 today.
- not even close.
Oil isn't at $55 because of supply:demand Super Cycle Spikes, or any of the reasons spoken about by the Pom-Pom Waving Cheerleaders here of late.
It's here first and foremost...because of the reversal of the US Dollar to the Euro and secondly because of USA intervention and manipulation in the "paper" futures market...and because we are the only global economy that can temporarially withstand a temporary spike in Oil and we are using Oil to battle the Chinese on the issue stated above....it will also serve a 2nd master in Alan Greenspam...in cooling the US Economy, helping to prick the Housing Bubble and doing much of what the Fed via raising Interest Rates can do...
You can "make" money without knowing why you made it... but, you won't be able to "keep" it - if you don't.
An Options Straddle strategy - leveraging "volatility" is the play in the Oilpatch...with a present negative bias on the economic & underlying fundamentals at current price levels....and you'd better be watching US:China Geopolitics 24x7...and things like the Chinese Currency Manipulation Act & what's going on with the Textile dumping etc.
Oil may need to be ramped to $80, even $105 to bring China to Jesus so to speak...on the above issues (1 thru 4) at a minimum...and to ultimately topple the Chinese Communist Leadership as the ultimate intention ala the Deja Vu-esque way in which the Reagan administration with the help of the Saudi's....used a mix of Oil and Economic's to collapse the "former" Communist Soviet Union's economy....and ultimately their Communist Government.
Remember; politically speaking - George W. Bush is not his fathers son... he is Ronald Reagan's.
"W" is on a historic-legacy mission and it is broader and bigger than most think.
...Deja Vu -Part Deux with China has arrived.
Can you all now say:
Tic' Toc`
...class dismissed. |
