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The international oil price shot up to ceiling high primarily by demand and speculative drive. This has landed the whole world in a sizzling hot oil talk.Malaysia apparently could no longer take it any more and decided to desubsidise in a drastic move to get breathing-space.
The 40% surge took the whole nation by surprise. The rakyat cried out loud to express their deep concern about the impact.
But this is beneficial to the nation in a long-term perspective, our leaders chipped in with their reasoning.
Some tried to pin-point the culprits, hoping to be rational rather than emotional. They have the point!
That should take our view to the international arena where oil is traded increasingly with frenzied speculation.
Goldman, Citi, JP Morgan and Morgan Stanley have been the known major speculators in oil trading, driving up the oil price to record high. So, are they to be blamed?
No, they are all purely in financial investment business, trading within the established legal framework.
Impose windfall tax and restrict speculative trading, cried out the leaders of the world.
Great idea, but would it be effective? I really have reservation!
Let's all wake up to it - we are now in an era of expensive fuel! Gone forever are the days of cheap oil!
The above picture was taken when Sibuians were driven by rumours to flock to petrol stations to fill up tanks two nights ago. There was wild rumour flooding the market that the stations would go on strike following a failure to settle on petrol commision. The picture is by courtesy of LIONG.
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3 comments:
Oh puleeze.. it's jerks like you who will sit back and allow gas to go to $10 a gallon instead of $5, while telling us to get used to it. Obviously you don't own a car or if you do you don't drive it far. With the oil companies making BILLIONS in profits; and Morgan Stanley and Goldman-Sachs and the like trading in an almost invisible, unregulated commodities market while manipulating the price of oil, safeguards need to be applied to make sure the market operates fairly. I know gas will never be cheap. but the wholesale robbery occuring now is a bunch of crap. Either you are a trader, own stock in the oil companies, have more money than you know what to do with, are just plain stupid, or all of the above.
anonymous, if you are from the States, then you should tell Ben Bernake to introduce fast to restrict margin trading in commodities markets. It is the lax trading regulation that gives wonderful chances to the speculators. As you may be aware, Ben Bernake proposed the above two days ago and instantly met with thumbs down from the trading houses.
Similarly, you should tell Obama to impose windfall tax on profits when he gets elected at the end of the year to curb speculation.
In any event, voice out to your leaders to take up the rampant manipulations with President Bush.
All the best to you!
I think it has FINALLY dawned on politicians that there is obviously something very wrong going on. The banks are trying to make up for their greed and losses in the mortgage meltdown by manipulating commodities and driving the prices up in an unregulated, almost invisible market. Congress has to get off their rich fat butts, quit talking the problem to death and close the Enron loophole for starters. Sorry to sound like a rabid yank but I promise you they are driving us all NUTS and I promise you they are hearing it. Thanks for the forum to blow off some steam. - Indiana, U.S.
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