How many more times is the USA going to see 'manipulated' crude commodity pricing busts and take hints which continue to have dramatic impact on our oil based economy? Its not coincident that our economy is in the gutter again while part of crude, our gasoline prices have been rampant by manipulators yet again since the crash. Hey government, you want to know how to recover our economy sooner and take control of our debts...look at this chart and explain to us why it is so manipulated than ever before 2008?
Back on April 13th 2011, I read this PR by Bank of America (BAC) pumping innocents to buy oil and trying to manipulate crude commodity price said that it will hit $160
On Wednesday April 13, 2011, 9:41 am EDT
Following Goldman Sachs' negative call on crude prices which took the wind out of the commodities rally this week, Bank of America Merrill Lynch is predicting a 30 percent chance that Brent crude could hit 160 dollars a barrel in 2011.
"Commodity prices should move broadly higher in 2011 on robust economic growth in emerging markets, despite relatively weaker growth in developed markets," said Sabine Schels, a commodity strategist at BoA Merrill Lynch in London in a research note.
"With oil demand expanding rapidly and Libya production down by at least 1 million barrels per day, we forecast (the) Brent crude oil price to average 122 dollars a barrel in the second quarter, and believe prices could briefly break through 140 dollars in the next 3 months," she said.
Given the risks from the situation in the Middle-East and North Africa, Schels says there is a chance the price could go even higher over the next 2 months.
"Under our upside risk scenario, Brent prices could average this year between 125 dollars a barrel and 160 dollars a barrel," Schels said.
LMAO and putting fear among the USA as well as the world. I was highly speculate at the motive of their attempt and called out and do my own research to estimate the future value of crude (then @ $109.66) as well as BAC (then @ $13) and look where it is at today (8-5-2011)...crude @ $ 86.88 and BAC @ $8.09...do you really want to trust your hard earned money into a bank that is badly managed, string of lost revenues, highly speculative like real-estates as well as this careless PR and intention of trying to hurt Americans whom bailed it out of stinkhole? How dare they continue to call themselves Bank of America when most of outcomes they have done are anti-America!?!?!
My reaction on 4-13-2011:
"Boy, when I read something as dumb as the PR statement made by a bailed out bank that got us into housing bubble and now pushing for another bubble with oil, TIME TO SELL & SHORT this pig names Bank of America again! "I have never like BoA and with current valuation at $13, its way too high IMHO while factoring their statement about crude to hit $160 which IMO is BS for now, shall we see BoA below $7 like what we will pay at gas pump with their crude pre...diction? What a bunch of idiot.... LOL, they should change their name to Bank of Mideast after their bankruptcy and you know what don't expect U.S. government to bail you out this time around cause it is too broke to save itself with crude at $160!
I said boycott BoA and put them on their own medicine this time, they have yet learn their lesson...seriously!"
the reason i gone back to this is that USA as well as today's world are too highly dependable on crude oil. since it is commodity, it should be trade base on supply and demand from stockpiles like many others like oranges, pork belly, soy, wheat, gold...however, when you see the price of crude starting to push by extreme speculative and manipulative attempts by a too big to failed bank, our economy is going to have problem! That is why I encourage our federal government as well as SEC to restrict on manipulations of commodity prices that can greatly hurt our economy. We are in such rough economical recovery today not just political alone, crude was a major factor couple months back...think about it! ;)
"Prices go up immediately for any absurd excuse. They go down as slowly as they can get away with" I laughed with this so hard, couldn't have agreed with this more! We aren't just facing manipulative crude pricing, but also de-regulatory gasoline pricing as well! if this is the case, I see record taxing off these record profit big oil whom are trying to neglect the equilibrium.
President Obama even giving out our precious oil reserves to European those bastards started the war with Lybian! Look like we have too much oil in our reserve that we don't care to use ourselves yet we donate them away like we got enough while we are paying artificial manipulated high gasoline price at the pump! WHAT?!?!
Guys and gals, I hate to tell you guys, but Obama or Bush or em Democrates/Repulicans have little to anything to do with our current depressive state of economy! They are all just smoke and mirror, a perfect distraction, a puppet of their own master and little tree trunk inside the big forest! The sooner we look past the politics, the faster and stronger we will recover back to American dream. It doesn't take smartest people to see why USA's economy has been so fragile for the last couple years, no AAA rating definitely not it, its the crude that should be center and focus to the relation of our economical outcome and downfall! Thank goodness that we are slowly moving away from heavy industrial based economy while consume lesser oil than before and slowly adapting more of alternative sources of energy which all are very good move to get us away from crude. But like I said so many times on here, USA is an oil hog and continual to be one for the next couple decades until we find another stronger better more versatile stable abundant energy source than crude, I am sorry, but we are all doom as it is when everything that we create right now is all based on and around oil!
Why I am concerning so much about it right now and not years back, because our crude commodity price never have seem to manipulate to the points where it is completely out of whack and no longer trading based on supply and demand! The sooner we control crude prices based around stockpiles and expectations, the faster our economy shall recover. I am willing to bet when crude started to trade based on supply and demand, while gasoline pricing are well regulating, we da American will see better days coming...what does normal oil prices translate to in bigger picture? Well, it means more spending, more jobs, more creations, more confident, more innovation and yes discovery of ultimate alternative energy source to replace it, thats right! If we can take control of oil and gasoline pricing manipulation, USA's economy is 85% back on business, and the rest is all about taxes and spending controls and you know politics as usual, mark my words!
Taxing alone will be temporary won't complete solve our debt issues, when there is barely anyone working, may I ask you who are you going to tax when the tax are so high, its better off not working while no one will hire? Spending also have to be part of solution while government need to regulate commodity speculation like crude oil and gas pricing oversight! They are eating away our incomes and left little for more taxes! Or government can hike tax on record profit big oil whom have been overcharging us for years! If you ask me what was the major cause the melt down in 2008, I would say crude speculation and manipulation!
hey commodity manipulators, you want ultra speculations, try equities, you moron! Oh, and what does manipulated higher crude oil prices translate into...artificial inflation! Now that is just great!
Commodities essential to our economy should NOT have prices set based on speculative trading. Buyers of crude oil should be required to take actual physical possession of the oil and pay for shipping, insurance, storage, and other fees. This would help establish supply and demand as the basis for oil pricing. This has been discussed for a while now but still no change. Why not? Too many institutions with good lobbyists are making a lot of money under the current rules.
No hard FEELINGS for Bank of America (BAC) today with it drops 20% while downing more than 50% since their attempts at manipulating crude oil back on 4-13-2011!
For as long as there are big disparity between the crude oil future and prices at the gas pump, the market will continue to feel the heat while our economy will continue to suffer! I mean when brent crude trading higher that day and gas prices at the pump reflect to the appreciation while on day brent crude trading lower, gas prices at the pump will only reflect to the depreciation weeks later! WHY!?!?! You get my points, the disconnect and disparity between the commodity futures pricing on oil has been manipulated!
Read up on what I think about US federal reserve chairman Ben Bernanke's decision to halt interest rate at near zero for more than2 years on 8-9-2011!
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