interesting: Max Kaiser interviews Chris Cook re: inflated oil prices and likely bust

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more. You can visit the forum page to see the list of forum nodes (categories/rooms) for topics.

Please have a look around and if you like what you see, please consider registering an account and joining the discussions. When you register an account and log in, you may enjoy additional benefits including no ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

bushi

Ground Beetle
Messages
968
Reaction score
7
Points
143
Hello,

This guy is a former oil industry regulator, and I find the whole interview extremely interesting and thought provoking - particularly, his views why the current oil price is the bubble ("bubble is, when everyone is buying some asset" - definition, and how he thinks it is that Joe Public right now is investing in oil - which was my first thought - when share market started crashing, people cashed in as quick as they could, and then looked for some other asset to put this money in - that's exactly why oil prices have soared during/after our current recession, and that was my thought for ages), and the role of investment banks in inflating it. He says, that investment banks themselves do not hold risk positions in the market, they have rather created investment vehicles for retail investors to hold the risks in the market themselves. He also points out that some oil producers are hedging at $60 per barrel, when market prices are more than double this - is it something that producers knew about the market, that owners of "paper oil" don't? Like the real supply/demand curves, and manufacturing costs, etc?

 
Last edited:
Back
Top Bottom