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So now that oil prices have been relatively stable at $80-$110/bbl for quite some time, are the greedy speculators just taking a break?

Axulus

Axulus

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If everyone remembers back when oil prices were on a seemingly never-ending increase, up to $150/bbl, everyone blamed the greedy speculators who were raking in the profits and "manipulating" the market.

So, what has changed? Did the speculators suddenly become less greedy, or something? Did they all decide to retire after making their profits (with no other greedy ones waiting in the wings to take their place)?
 
Public outrage and government pressure would be my guess at the price range.
 
Speculation ceased to pay off. US production growth outstripped US consumption, OPEC did increase their quotas, and most of the developed world is down in consumption in the last decade.

Things may swing back the other way. Keep an eye on Russia and ISIS and be sure to sell on the news.
 
Speculators are still something the oil market doesn't need. If there's less profit in it for them today for whatever reason then good. Hopefully whatever conditions are keeping them away will continue.
 
Axulus said:
If everyone remembers back when oil prices were on a seemingly never-ending increase, up to $150/bbl, everyone blamed the greedy speculators who were raking in the profits and "manipulating" the market.

So, what has changed? Did the speculators suddenly become less greedy, or something? Did they all decide to retire after making their profits (with no other greedy ones waiting in the wings to take their place)?
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FYI, $150 is about 50% higher than $100. I'm just saying that the difference is quite notable. The fact that speculators grossly outnumbered people who were actually producing and selling oil seemed to point to a problem.
 
Who says greedy speculators can't make money when crude goes down or even stays the same?
 
dismal said:
Who says greedy speculators can't make money when crude goes down or even stays the same?
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When they make money when that happens, they suddenly become Functioning Members of Society™ or we just don't care about them.
 
Axulus said:
dismal said:
Who says greedy speculators can't make money when crude goes down or even stays the same?
Click to expand...

When they make money when that happens, they suddenly become Functioning Members of Society™ or we just don't care about them.
Click to expand...

Well obviously if you make huge profits betting on crude to go down you aren't being greedy.
 
Actually, I think that North Dakota and Texas may have had a hand in it. And there's lots of other placing where fracking has proven to be profitable. In fact, I just heard that the US is, or soon will be, the world's largest oil producer once again. I haven't confirmed that claim, however. But we are producing a good deal more than we have in a while. So I think the law of supply and demand is a reasonable explanation of this development.
 
Yes of course speculators are just good Samaritans looking out for the other guy.
 
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