Jan
3
Is it unpatriotic to invest in Oil?
Filed Under Elections
The entire US economy requires Oil at reasonable costs. All of our jobs are reliant on Oil.
That said, is it unpatriotic to put your investment dollars into Oil as a commodity? (I am not saying investing in Oil companies too— only Oil as a commodity.)
A lot of people who invest look at our economy and our national debt and see bad days on the horizon, so they move their money from stocks into commodities. Gold and Oil are two favorites as their prices consistently rise as people buy them.
Headline News said it costs $50 to produce a barrell of Oil. Oil is selling for $139 a barrell. Headline news says speculation on Oil has created that disconnect.
Are people being greedy at the expense of the nation to buy something our country needs (oil) instead of something we comparitively really don’t (gold)?
Gas cost $4 a gallon today. If Oil ran say $65 a barrell, it would cost $1.87 a gallon.
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2 Responses to “Is it unpatriotic to invest in Oil?”
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Yes cause gas in Saudia Arabia is 1.50… right about what you stated…
indeed, many economists are saying it is the oil futures speculators that are causing this latest run up in gasoline prices. And who are these speculators? Mostly rich investors who can afford to risk some money with a chance to “make a killing”. Unfortunately, the futures market is driven by one fundamental–greed. As a past futures trader way back when, i witnessed a similiar situation back in the 70’s when gold, silver and grains were all over bought. Eventually, the FTC (fed trade commission) stepped in and froze trading for a while. They may have to do this again, but whether they do will depend on when the bush administration is satisfied with the number of rich bush friends that have made enough money. And when the crisis is “over”, we all will be stuck with (at least) $4/gallon gasoline.