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The Weekly Link

I try not to link to others work, but once again, I'm in a rush and can't comment on my own about a given subject. In this post, Clayton Cramer writes his theory about why oil is at such a high level all of a sudden.

While Im out doing the 'Saturday Shuffle', take a look at what he's put together. I'll add more to it later, my two cents is that he's on to something.

As Senor Verde Says - Read The Whole Thing...

Posted @ October 23, 2004 10:00 AM | Current Affairs

Comments

i had been suspect of Soros moving the oil markets for a while, but my take in his strategy is, since he is a currency speculator and oil is priced in USD, he is using his expertise and money to weaken the US dollar, in effect moving the price of oil way up.

Posted by: robert at October 23, 2004 10:24 AM

Robert, I just checked on the movements of exchange rates, the dollar has moved downward against the British pound and the Euro just under 8% in the past 365 days according to the site I visited.

I do think manipulation of the oil markets is taking place. But the $55(?) barrel price is in the spot market. I'm no expert, but isn't most of the market for oil moved under long-term contract? I think the spot market is the source of short-term hedging transactions and the short-term volatility. I don't have a good theory or explaination of oil's movements.

Posted by: Gary B at October 23, 2004 08:12 PM

Long on speculation and short on facts.

I imagine that this could happen as it happened with the Hunts and silver in the early eighties but I sure would like to see some facts. And I do believe that Soros is capable of this.

Posted by: sTEVE at October 26, 2004 10:27 AM