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Are speculators really driving up gasoline prices?

Marketwatch -- Have you heard about the great conspiracy behind gasoline prices?

Apparently, it’s the one that’s causing prices to skyrocket at the pumps. Gas is up about 50 cents so far this year, hitting an average of about $3.80 a gallon nationwide.

Of course, somebody must be “to blame.” Turns out it’s the fault of “greedy speculators” who are driving up the price.

Everybody says so. Progressive websites. Conservative-leaning newspapers. Politicians at the state and federal level. Even regulators.

The evidence is that “non-commercial” interests — in other words, financial investors and speculators — now account for most of the trading in oil futures. On some occasions, indeed, they pretty much constitute the entire market. It’s those darn greedy speculators, stealing your money! It’s a

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Submitted Mar 05, 2013 By: WxVette

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KAR120CSII Champion Author Oregon Posts:3,172 Points:619,620 Joined:Apr 2010	Message Posted: Mar 8, 2013 1:08:28 AM Ignore KAR120CSII Report Abuse No conspiracy -- just good old American supply and demand. Great to see unbridled capitalism.
honda0105 Champion Author Tallahassee Posts:18,609 Points:1,608,545 Joined:Nov 2008	Message Posted: Mar 8, 2013 12:04:18 AM Ignore honda0105 Report Abuse oil and pump prices weren't swinging wildly until specutraitors got free rei(g)n under Dubya.
VaPider Sophomore Author Richmond Posts:234 Points:97,905 Joined:Nov 2012	Message Posted: Mar 6, 2013 8:54:06 AM Ignore VaPider Report Abuse Anyone blaming congress and their tax greed?
judgemobile Champion Author Ohio Posts:7,565 Points:2,444,160 Joined:Nov 2005	Message Posted: Mar 6, 2013 6:56:14 AM Ignore judgemobile Report Abuse greed lives
jim27106 All-Star Author North Carolina Posts:770 Points:781,210 Joined:Feb 2009	Message Posted: Mar 6, 2013 5:58:19 AM Ignore jim27106 Report Abuse The author claims speculators don't take delivery. The folks at http://peakoildebunked.blogspot.com/2008/05/355-banks-hoard-oil-in-storage-tanks.html disagree. I should go to bed and am not going to find more recent sources. [Edited by: jim27106 at 3/6/2013 5:58:32 AM EST]
jim27106 All-Star Author North Carolina Posts:770 Points:781,210 Joined:Feb 2009	Message Posted: Mar 6, 2013 5:39:32 AM Ignore jim27106 Report Abuse That link crashed my IE 7.
StArrow68 Champion Author Oakland Posts:3,248 Points:1,359,360 Joined:Apr 2003	Message Posted: Mar 6, 2013 4:33:20 AM Ignore StArrow68 Report Abuse Even folks who play in these markets don't really understand how complex the systems are, leading to an inability to really explain it to everyone else. The markets provide a service, too bad some seem to mess with that.
afghaned Champion Author Hamilton Posts:11,809 Points:1,284,710 Joined:May 2004	Message Posted: Mar 6, 2013 2:39:23 AM Ignore afghaned Report Abuse So many people making the same comment!!!
carloco75 Champion Author Richmond Posts:3,711 Points:599,390 Joined:Oct 2010	Message Posted: Mar 6, 2013 1:55:34 AM Ignore carloco75 Report Abuse Ummm...
wshutton Champion Author Los Angeles Posts:1,662 Points:923,970 Joined:Mar 2009	Message Posted: Mar 6, 2013 1:33:30 AM Ignore wshutton Report Abuse A question for the author: Why have American retail fuel prices increased over $0.50 per gallon in two months?
kgbellman Champion Author Ann Arbor Posts:2,703 Points:729,890 Joined:Mar 2011	Message Posted: Mar 6, 2013 1:31:52 AM Ignore kgbellman Report Abuse Hmmm - let me think and I will get back to you
MrLefty0706 Champion Author Chicago Posts:1,444 Points:350,335 Joined:Apr 2012	Message Posted: Mar 6, 2013 1:24:52 AM Ignore MrLefty0706 Report Abuse We already knew it was speculators. Take oil and gas off the commodity market.
Bill100 Champion Author Grand Rapids Posts:41,473 Points:1,160,895 Joined:Jan 2010	Message Posted: Mar 6, 2013 1:18:32 AM Ignore Bill100 Report Abuse Marketwatch: Having a hard time finding something to write about?
DirtDauber Champion Author San Antonio Posts:6,776 Points:1,626,485 Joined:Nov 2005	Message Posted: Mar 6, 2013 1:17:19 AM Ignore DirtDauber Report Abuse This is a pretty inane question. If this is a news article, then tell us the news, don't ask a question.
Ron77095 Champion Author Houston Posts:3,055 Points:601,700 Joined:Sep 2011	Message Posted: Mar 6, 2013 1:16:00 AM Ignore Ron77095 Report Abuse Really?
arinkrat17 Champion Author Twin Cities Posts:6,284 Points:1,330,500 Joined:Aug 2009	Message Posted: Mar 6, 2013 1:15:39 AM Ignore arinkrat17 Report Abuse Ok
unclenorman Champion Author Tampa Posts:1,338 Points:138,275 Joined:Jan 2012	Message Posted: Mar 6, 2013 1:15:10 AM Ignore unclenorman Report Abuse REMOVE OIL/GAS FROM THE COMMODITY MARKETS NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
HA4CNN Champion Author Toronto Posts:5,614 Points:1,541,440 Joined:Dec 2006	Message Posted: Mar 6, 2013 1:14:36 AM Ignore HA4CNN Report Abuse What a surprise.
fenster66 Champion Author Pittsburgh Posts:3,345 Points:673,115 Joined:May 2011	Message Posted: Mar 6, 2013 1:13:29 AM Ignore fenster66 Report Abuse all I know is that speculation is alive and well.....
rap12MA Veteran Author Boston Posts:451 Points:150,925 Joined:Mar 2012	Message Posted: Mar 6, 2013 1:11:15 AM Ignore rap12MA Report Abuse Speculators should be monitored and caps should be put in place.They have free rein which results in huge flucuations of prices at the pump.Between them and the refineries,I don't know who is screwing us more.
tml721 Champion Author Columbus Posts:12,605 Points:2,388,575 Joined:Jul 2005	Message Posted: Mar 6, 2013 1:10:39 AM Ignore tml721 Report Abuse NO they don't, Its the stupidity in the house house which causes it.
TBONE3 Champion Author Pennsylvania Posts:8,741 Points:1,975,675 Joined:Mar 2005	Message Posted: Mar 6, 2013 1:10:22 AM Ignore TBONE3 Report Abuse Any solution to the pricing problem at this time? If so, lets hear it.
pa79th Champion Author Pennsylvania Posts:1,777 Points:1,215,125 Joined:Jun 2007	Message Posted: Mar 6, 2013 1:06:01 AM Ignore pa79th Report Abuse That's sure to drive the prices up! Haven't seen anything yet that drives them down.
AKmailman Champion Author Alaska Posts:5,628 Points:1,556,590 Joined:Jul 2004	Message Posted: Mar 6, 2013 1:05:39 AM Ignore AKmailman Report Abuse What conspiracy ? It's a fact
Gas Thirsty Champion Author Los Angeles Posts:4,876 Points:3,226,800 Joined:Mar 2003	Message Posted: Mar 6, 2013 1:04:00 AM Ignore Gas Thirsty Report Abuse The speculators are only part of the problem.
gasaholicNC Champion Author North Carolina Posts:1,214 Points:1,447,330 Joined:Sep 2008	Message Posted: Mar 6, 2013 1:03:41 AM Ignore gasaholicNC Report Abuse There All In for The Money...
streetcars Champion Author Toledo Posts:12,259 Points:2,605,665 Joined:Apr 2005	Message Posted: Mar 6, 2013 1:03:31 AM Ignore streetcars Report Abuse Take gasoline off the market, they get to gamble with the crude oil as it is.
Wally3023 Champion Author Pennsylvania Posts:2,025 Points:539,225 Joined:Sep 2011	Message Posted: Mar 6, 2013 1:03:03 AM Ignore Wally3023 Report Abuse That's right
annettemendieta Champion Author San Diego Posts:1,699 Points:312,925 Joined:Jul 2012	Message Posted: Mar 6, 2013 1:00:25 AM Ignore annettemendieta Report Abuse Another reason to raise gas prices.
comprof Champion Author Houston Posts:6,854 Points:1,355,775 Joined:Jul 2009	Message Posted: Mar 6, 2013 12:59:54 AM Ignore comprof Report Abuse Speculators are convenient to blame. How about taxes, Politics, world turmoil, supply interruption and/or irregularities?"
Z51Corvette Champion Author Austin Posts:8,480 Points:1,670,195 Joined:Jan 2008	Message Posted: Mar 6, 2013 12:58:49 AM Ignore Z51Corvette Report Abuse of course they are! Silly question! The article is a bunch of HOOEY!
obimerrill Champion Author Cincinnati Posts:1,435 Points:288,740 Joined:Jul 2012	Message Posted: Mar 6, 2013 12:58:33 AM Ignore obimerrill Report Abuse Absolutely
rippinusoff Champion Author Lexington Posts:7,393 Points:1,486,575 Joined:May 2007	Message Posted: Mar 6, 2013 12:58:07 AM Ignore rippinusoff Report Abuse yes
DustyHorse Champion Author Virginia Posts:6,079 Points:1,390,785 Joined:Oct 2008	Message Posted: Mar 6, 2013 12:54:20 AM Ignore DustyHorse Report Abuse I read both pages of this article and it makes no sense. It is just a lot of hand waving. Yes the speculators and market manipulators are causing an increase in prices. This is a bubble just like the housing bubble and the dot com bubble and it will burst.
jrschl Champion Author Louisville Posts:2,957 Points:679,115 Joined:Jun 2011	Message Posted: Mar 6, 2013 12:48:53 AM Ignore jrschl Report Abuse They are a great influence, but not the only one.
Glock26 Champion Author Dayton Posts:1,519 Points:631,410 Joined:Mar 2011	Message Posted: Mar 6, 2013 12:47:47 AM Ignore Glock26 Report Abuse No dout about it!!!
tspaldi Champion Author Provo Posts:6,019 Points:934,740 Joined:Sep 2010	Message Posted: Mar 6, 2013 12:44:43 AM Ignore tspaldi Report Abuse Just set it so that the speculators must take delivery before they can resale the oil. Then watch the prices drop!
probedude2 Champion Author Akron Posts:12,548 Points:2,379,230 Joined:Jun 2003	Message Posted: Mar 6, 2013 12:42:11 AM Ignore probedude2 Report Abuse I thought it was the refineries who were making the money this time
Buddy2264 Champion Author Tampa Posts:11,649 Points:2,358,995 Joined:Oct 2005	Message Posted: Mar 6, 2013 12:41:11 AM Ignore Buddy2264 Report Abuse We questioned the prices and supply and now the prices seem to be going back down.
dougtaylor1 Champion Author Phoenix Posts:1,746 Points:445,500 Joined:Jun 2011	Message Posted: Mar 6, 2013 12:40:13 AM Ignore dougtaylor1 Report Abuse They are making money at it or they would not be doing it. Them making money ends up costing us at the pump. Who else pays for it. Are there enough fools loosing money at the trading game that they are paying for the winners. I don't think so. We just end up buying from the commodity traders.
LQQKGAS Champion Author Phoenix Posts:2,663 Points:1,194,145 Joined:Oct 2009	Message Posted: Mar 6, 2013 12:39:34 AM Ignore LQQKGAS Report Abuse 10K: It is called Armageddon, in Revelations.
Bigwaynef Champion Author South Carolina Posts:11,465 Points:2,079,785 Joined:Dec 2006	Message Posted: Mar 6, 2013 12:39:16 AM Ignore Bigwaynef Report Abuse It's Bush's fault, OOhh-bamass says!
JMW1942 All-Star Author Michigan Posts:561 Points:405,020 Joined:Feb 2012	Message Posted: Mar 6, 2013 12:36:05 AM Ignore JMW1942 Report Abuse Yes to speculators.
jkpsr Champion Author New Jersey Posts:4,074 Points:1,100,930 Joined:Jun 2005	Message Posted: Mar 6, 2013 12:34:25 AM Ignore jkpsr Report Abuse They do not have to take delivery because they sell the option before it comes due. Blame it on cheap money.
grt197 All-Star Author Illinois Posts:568 Points:124,610 Joined:Jan 2013	Message Posted: Mar 6, 2013 12:33:27 AM Ignore grt197 Report Abuse yes
southrob Champion Author Tucson Posts:3,590 Points:686,225 Joined:Mar 2011	Message Posted: Mar 6, 2013 12:32:47 AM Ignore southrob Report Abuse dhan
Mowerman08 Champion Author Milwaukee Posts:4,755 Points:1,216,270 Joined:Aug 2008	Message Posted: Mar 6, 2013 12:32:27 AM Ignore Mowerman08 Report Abuse The market is up today watch crude go up rapidly.
10k Champion Author North Carolina Posts:21,240 Points:2,253,045 Joined:May 2006	Message Posted: Mar 6, 2013 12:28:39 AM Ignore 10k Report Abuse big oil, speculators, and pure ol' greed-gimme, gimme.. but one day the house of cards will fall down, go boom !!..
rawdog1313 Champion Author Lexington Posts:3,294 Points:1,641,830 Joined:May 2008	Message Posted: Mar 6, 2013 12:28:21 AM Ignore rawdog1313 Report Abuse YES!!!
bikechuck Champion Author Indianapolis Posts:7,005 Points:2,062,125 Joined:Apr 2006	Message Posted: Mar 6, 2013 12:25:32 AM Ignore bikechuck Report Abuse Ok, just the cost of exploration, recovery, refining, and delivery, all the while jumping through hoops of the EPA. So while some will make profits, others will lose. It is what it is.