posted on Feb, 27 2012 @ 01:38 AM
Originally posted by Blackmarketeer
JP Morgan and Goldman Sachs alone have nearly 300 millions barrels stashed away aboard rented supertankers, just to keep prices elevated.
That doesn't make sense for three reasons: 1. if they're hoarding the oil, then they are losing profit; when they finally release all that oil then
the net profit will average out as if they supplied all
of it in the first place, and 2. Inflation. Since most currencies are being
inflated/devalued, there would be a net loss
because $20 of value today will mean $10 of value tomorrow, 3. If people are buying oil at the
current prices then the current prices are what the market has dictated and therefore this increase in price has to do with the further
devaluation/over-regulation of the currency being used to purchase it rather than hoarding. However, there's also a flipside to this. If demand has
, then that means either the supply right now is enough or the supply right now is too expensive, which also decreases profit and they
will be forced to adjust the market information according to the strength/weakness of the demand.
It's sketchy to claim there's self-interest in not
satisfying demand. If there's enough oil to meet demand and it's not being supplied then
it's probably due to the lack of free-trade.