Who Should We “Blame” For Low Oil Prices?

Posted on Nov 13 2014 - 4:30pm by Sharpe Trade

I‘m just going to come out and say it.

There are lot of guys out there on YouTube.  In Social Media.  Guys who like to see themselves as “The Young and Hip” political commentators.  Supposed “hard hitters” of ‘alternative media’.  People who purport themselves as the “Real News” of YouTube and social media sphere’s.  I would love it, if they simply have no more financial commentary.  Please.  I’m begging you.  At least until they receive a basic education as to the mechanisms and functions of regulated markets.

You know, once upon a time, if a “journalist” was discovered to have a set of inaccurate facts, to have skewed the correlation of such “facts”, it was blemish upon his name, his reputation, career and his own individual work ethic.  Such an event was supposed to be a blow that a “journalist” would have a difficult time recovering from.

Unfortunately, those days Oil_wellseem to have passed us by.

So I return to my original question.  Who do we blame?  That’s what I want to know.

I watched a few feeds today, and observed intelligent folks in the markets, analyzing the plummet in Crude Oil prices.  OPEC’s dump on the market, and the glut of supply.  Commenting on how deeply this impacts Russia’s oil and gas markets.

But in all of these aspects, I can’t find someone to blame.

Supply factors just seem so … boring.

Because you see … some years back I listened to YouTube page after YouTube page blame “oil speculators” as the driver of prices.  That “oil ‘speculators” were the reason that gas prices were so high.    Oh, but wait a minute, weren’t some of these commentators the same people giving ear to fear-mongering of “High Frequency Trading”?

I digress.

You see, I’ve noticed a pattern with such commentators.  And this pattern leads me to being thoroughly confused.  If prices are going up,  then it’s the fault of oil “speculation”.  But if prices are going down (may I add, in markets that are ridiculously easy to short on the part of oil traders), aha … then … then we can talk about a supply glut.  If prices are going down, they can talk about the driver of prices, OPEC, the boon to the U.S. consumer, supply gluts, and the rest of it.

So if prices are going up, we blame oil speculation.

If prices are going down, then it’s not oil speculation, it’s supply issues.

Got it.

Demagoguery at it’s finest.

Disclosure:  Yes, the post title is sarchasm.  I have no current position in Crude Oil or Gasoline, long or short at this time in any portfolio’s that I manage, in either the Futures, or ETF markets.   No businesses that I have a controlling interest in has, to my knowledge, has any position in Crude Oil or Gasoline, long or short, at this time.  My Immediate family has no current position in Crude Oil or Gasoline, long or short.    I am not looking to establish a position in Crude Oil or Gasoline in any direction within the next 24 hours.

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