Comments on: This Week on BNET (July 7 – 11) http://crankyflier.com/2008/07/12/this-week-on-bnet-july-7-11/ Thu, 09 Feb 2012 17:57:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: A http://crankyflier.com/2008/07/12/this-week-on-bnet-july-7-11/comment-page-1/#comment-56052 A Mon, 14 Jul 2008 14:03:46 +0000 http://crankyflier.com/?p=1095#comment-56052 On the Airlines Attack Oil Speculators, I think this is a bad move. For one, I wholly disagree with the premise that speculators are the major reason for increasing oil prices. But, with currency inflation happening all around the globe, investing in commodities does make sense. The ATA press release is partly correct about the speculators that never intend to take delivery of said oil driving prices up. However, if we force the gov't to regulate the speculation investors simply aren't going to stand by and earn less on their captial. They'll take those dollars over to Dubai or Iran or Russia or any of the other places trying to start up an oil bourse. No oil producer will want their product sold in a fixed market where they can't get the most return on investment, plain and simple. In the end the airlies will be in even more pain trying to buy oil futures in Euros at some new exchange on the other side of the globe. We have a good deal with the majority of oil being traded in US dollars on an exchange in the USA. On the Airlines Attack Oil Speculators, I think this is a bad move. For one, I wholly disagree with the premise that speculators are the major reason for increasing oil prices. But, with currency inflation happening all around the globe, investing in commodities does make sense.

The ATA press release is partly correct about the speculators that never intend to take delivery of said oil driving prices up. However, if we force the gov’t to regulate the speculation investors simply aren’t going to stand by and earn less on their captial. They’ll take those dollars over to Dubai or Iran or Russia or any of the other places trying to start up an oil bourse. No oil producer will want their product sold in a fixed market where they can’t get the most return on investment, plain and simple.

In the end the airlies will be in even more pain trying to buy oil futures in Euros at some new exchange on the other side of the globe. We have a good deal with the majority of oil being traded in US dollars on an exchange in the USA.

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