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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:3,167 Points:617,895 Joined:Apr 2010	Message Posted: Mar 7, 2013 10:08:28 PM Ignore KAR120CSII Report Abuse No conspiracy -- just good old American supply and demand. Great to see unbridled capitalism.
honda0105 Champion Author Tallahassee Posts:18,590 Points:1,606,595 Joined:Nov 2008	Message Posted: Mar 7, 2013 9:04:18 PM 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:229 Points:96,830 Joined:Nov 2012	Message Posted: Mar 6, 2013 5:54:06 AM Ignore VaPider Report Abuse Anyone blaming congress and their tax greed?
judgemobile Champion Author Ohio Posts:7,559 Points:2,443,165 Joined:Nov 2005	Message Posted: Mar 6, 2013 3:56:14 AM Ignore judgemobile Report Abuse greed lives
jim27106 All-Star Author North Carolina Posts:770 Points:779,635 Joined:Feb 2009	Message Posted: Mar 6, 2013 2:58:19 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:779,635 Joined:Feb 2009	Message Posted: Mar 6, 2013 2:39:32 AM Ignore jim27106 Report Abuse That link crashed my IE 7.
StArrow68 Champion Author Oakland Posts:3,242 Points:1,358,315 Joined:Apr 2003	Message Posted: Mar 6, 2013 1:33:20 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:11,798 Points:1,283,210 Joined:May 2004	Message Posted: Mar 5, 2013 11:39:23 PM Ignore afghaned Report Abuse So many people making the same comment!!!
carloco75 Champion Author Richmond Posts:3,706 Points:598,415 Joined:Oct 2010	Message Posted: Mar 5, 2013 10:55:34 PM Ignore carloco75 Report Abuse Ummm...
wshutton Champion Author Los Angeles Posts:1,657 Points:922,245 Joined:Mar 2009	Message Posted: Mar 5, 2013 10:33:30 PM 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:2,698 Points:728,915 Joined:Mar 2011	Message Posted: Mar 5, 2013 10:31:52 PM Ignore kgbellman Report Abuse Hmmm - let me think and I will get back to you
MrLefty0706 Champion Author Chicago Posts:1,434 Points:348,385 Joined:Apr 2012	Message Posted: Mar 5, 2013 10:24:52 PM Ignore MrLefty0706 Report Abuse We already knew it was speculators. Take oil and gas off the commodity market.
Bill100 Champion Author Grand Rapids Posts:41,465 Points:1,159,920 Joined:Jan 2010	Message Posted: Mar 5, 2013 10:18:32 PM Ignore Bill100 Report Abuse Marketwatch: Having a hard time finding something to write about?
DirtDauber Champion Author San Antonio Posts:6,766 Points:1,624,535 Joined:Nov 2005	Message Posted: Mar 5, 2013 10:17:19 PM 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:3,045 Points:599,650 Joined:Sep 2011	Message Posted: Mar 5, 2013 10:16:00 PM Ignore Ron77095 Report Abuse Really?
arinkrat17 Champion Author Twin Cities Posts:6,274 Points:1,328,550 Joined:Aug 2009	Message Posted: Mar 5, 2013 10:15:39 PM Ignore arinkrat17 Report Abuse Ok
unclenorman Champion Author Tampa Posts:1,333 Points:136,450 Joined:Jan 2012	Message Posted: Mar 5, 2013 10:15:10 PM Ignore unclenorman Report Abuse REMOVE OIL/GAS FROM THE COMMODITY MARKETS NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
HA4CNN Champion Author Toronto Posts:5,609 Points:1,540,465 Joined:Dec 2006	Message Posted: Mar 5, 2013 10:14:36 PM Ignore HA4CNN Report Abuse What a surprise.
fenster66 Champion Author Pittsburgh Posts:3,335 Points:671,165 Joined:May 2011	Message Posted: Mar 5, 2013 10:13:29 PM Ignore fenster66 Report Abuse all I know is that speculation is alive and well.....
rap12MA Veteran Author Boston Posts:446 Points:149,950 Joined:Mar 2012	Message Posted: Mar 5, 2013 10:11:15 PM 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:12,595 Points:2,386,625 Joined:Jul 2005	Message Posted: Mar 5, 2013 10:10:39 PM Ignore tml721 Report Abuse NO they don't, Its the stupidity in the house house which causes it.
TBONE3 Champion Author Pennsylvania Posts:8,731 Points:1,973,725 Joined:Mar 2005	Message Posted: Mar 5, 2013 10:10:22 PM Ignore TBONE3 Report Abuse Any solution to the pricing problem at this time? If so, lets hear it.
pa79th Champion Author Pennsylvania Posts:1,767 Points:1,213,925 Joined:Jun 2007	Message Posted: Mar 5, 2013 10:06:01 PM 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:5,618 Points:1,555,390 Joined:Jul 2004	Message Posted: Mar 5, 2013 10:05:39 PM Ignore AKmailman Report Abuse What conspiracy ? It's a fact
Gas Thirsty Champion Author Los Angeles Posts:4,866 Points:3,225,725 Joined:Mar 2003	Message Posted: Mar 5, 2013 10:04:00 PM Ignore Gas Thirsty Report Abuse The speculators are only part of the problem.
gasaholicNC Champion Author North Carolina Posts:1,213 Points:1,446,210 Joined:Sep 2008	Message Posted: Mar 5, 2013 10:03:41 PM Ignore gasaholicNC Report Abuse There All In for The Money...
streetcars Champion Author Toledo Posts:12,249 Points:2,603,715 Joined:Apr 2005	Message Posted: Mar 5, 2013 10:03:31 PM 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:2,019 Points:537,430 Joined:Sep 2011	Message Posted: Mar 5, 2013 10:03:03 PM Ignore Wally3023 Report Abuse That's right
annettemendieta Champion Author San Diego Posts:1,691 Points:310,915 Joined:Jul 2012	Message Posted: Mar 5, 2013 10:00:25 PM Ignore annettemendieta Report Abuse Another reason to raise gas prices.
comprof Champion Author Houston Posts:6,844 Points:1,353,825 Joined:Jul 2009	Message Posted: Mar 5, 2013 9:59:54 PM 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:8,475 Points:1,668,445 Joined:Jan 2008	Message Posted: Mar 5, 2013 9:58:49 PM Ignore Z51Corvette Report Abuse of course they are! Silly question! The article is a bunch of HOOEY!
obimerrill Champion Author Cincinnati Posts:1,430 Points:287,765 Joined:Jul 2012	Message Posted: Mar 5, 2013 9:58:33 PM Ignore obimerrill Report Abuse Absolutely
rippinusoff Champion Author Lexington Posts:7,393 Points:1,485,075 Joined:May 2007	Message Posted: Mar 5, 2013 9:58:07 PM Ignore rippinusoff Report Abuse yes
DustyHorse Champion Author Virginia Posts:6,072 Points:1,388,920 Joined:Oct 2008	Message Posted: Mar 5, 2013 9:54:20 PM 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:2,952 Points:678,140 Joined:Jun 2011	Message Posted: Mar 5, 2013 9:48:53 PM Ignore jrschl Report Abuse They are a great influence, but not the only one.
Glock26 Champion Author Dayton Posts:1,514 Points:630,435 Joined:Mar 2011	Message Posted: Mar 5, 2013 9:47:47 PM Ignore Glock26 Report Abuse No dout about it!!!
tspaldi Champion Author Provo Posts:6,014 Points:933,765 Joined:Sep 2010	Message Posted: Mar 5, 2013 9:44:43 PM 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:12,538 Points:2,377,280 Joined:Jun 2003	Message Posted: Mar 5, 2013 9:42:11 PM Ignore probedude2 Report Abuse I thought it was the refineries who were making the money this time
Buddy2264 Champion Author Tampa Posts:11,639 Points:2,357,045 Joined:Oct 2005	Message Posted: Mar 5, 2013 9:41:11 PM 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:444,750 Joined:Jun 2011	Message Posted: Mar 5, 2013 9:40:13 PM 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:2,658 Points:1,193,170 Joined:Oct 2009	Message Posted: Mar 5, 2013 9:39:34 PM Ignore LQQKGAS Report Abuse 10K: It is called Armageddon, in Revelations.
Bigwaynef Champion Author South Carolina Posts:11,451 Points:2,077,835 Joined:Dec 2006	Message Posted: Mar 5, 2013 9:39:16 PM Ignore Bigwaynef Report Abuse It's Bush's fault, OOhh-bamass says!
JMW1942 All-Star Author Michigan Posts:554 Points:404,045 Joined:Feb 2012	Message Posted: Mar 5, 2013 9:36:05 PM Ignore JMW1942 Report Abuse Yes to speculators.
jkpsr Champion Author New Jersey Posts:4,069 Points:1,099,855 Joined:Jun 2005	Message Posted: Mar 5, 2013 9:34:25 PM 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:563 Points:123,635 Joined:Jan 2013	Message Posted: Mar 5, 2013 9:33:27 PM Ignore grt197 Report Abuse yes
southrob Champion Author Tucson Posts:3,588 Points:686,185 Joined:Mar 2011	Message Posted: Mar 5, 2013 9:32:47 PM Ignore southrob Report Abuse dhan
Mowerman08 Champion Author Milwaukee Posts:4,745 Points:1,215,070 Joined:Aug 2008	Message Posted: Mar 5, 2013 9:32:27 PM Ignore Mowerman08 Report Abuse The market is up today watch crude go up rapidly.
10k Champion Author North Carolina Posts:21,228 Points:2,251,960 Joined:May 2006	Message Posted: Mar 5, 2013 9:28:39 PM 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:3,289 Points:1,639,980 Joined:May 2008	Message Posted: Mar 5, 2013 9:28:21 PM Ignore rawdog1313 Report Abuse YES!!!
bikechuck Champion Author Indianapolis Posts:6,996 Points:2,060,195 Joined:Apr 2006	Message Posted: Mar 5, 2013 9:25:32 PM 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.