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Soros is a huge investor out in europe. He recently invested with a NYC defense attorney on the Italian soccor team.


Soros: Oil and Gas Prices WILL Decline

Posted: May. 29, 2008 09:05 a.m.

Billionaire investor George Soros told the U.K.'s Telegraph in an interview that the skyrocketing price of oil has become a "bubble," fueled by speculation, that will eventually burst...but not until both the United States and England are driven into a deep recession. "Speculation... is increasingly affecting the price" of oil, Soros said. "The price has this parabolic shape which is characteristic of bubbles."



A barrel of oil sold for $131.03 at the close of U.S. markets yesterday, according to Marketwatch, and the price of oil has driven gas prices close to $4 a gallon nationwide. For perspective, another AP report tells us that oil sold for "about $62 a barrel a year ago," and a gallon of gas sold for $2.85.



Soros's statement is significant because most analysts have not considered speculation to be a factor in the tremendous growth in oil prices seen this year. In fact, some analysts see the growth continuing without end, with $200 a barrel, and $7 a gallon, possible.



But Soros may not buy the $200 per barrel theory. 24/7 Wall Street writes, "Soros adds his name to a growing minority report which does not believe that oil will hit $200. A significant number of analysts and industry executives see supply actually increasing with new discoveries in places like Brazil and additional exploration in the US. They also believe that as Asia countries stop underwriting gas and diesel costs, demand will fall."



That's the classic bubble scenario. If institutional investors have bought oil believing that the price will continue to climb, but a recession drives down demand, or new discoveries drive up supply, they might conclude that they aren't going to make money on their holdings and sell them in a panic to minimize losses...bursting the bubble and causing prices to crash.

David Frum notes in Marketplace, "It's happened before. Between December 1985 and July 1986, the price of OPEC oil plunged by more than half, from $23.29 to under $10. They still remember the shock in Texas."

Even if Soros is wrong, his statement could have an impact on markets. The Telegraph's Irene Hell notes, "Wherever he appears...journalists surround him," and "No matter what he says, it has always had some effect on the markets."

Motor Trend concludes that, if today's prices are a bubble, that's not necessarily good news. "Soros predicts that the gas-price bubble will indeed burst, but only when the economic downturn becomes severe enough to reduce our energy demands significantly," MT notes. "Which is to say...Gas will be cheaper, but we'll all be too poor to buy it."


I cant stop laughing at this statement
"Soros predicts that the gas-price bubble will indeed burst, but only when the economic downturn becomes severe enough to reduce our energy demands significantly," MT notes. "Which is to say...Gas will be cheaper, but we'll all be too poor to buy it."

 

I'm pretty much understand what he's saying. What we need to do is create a lynch mob and find all those speculators and lynch em h:.

 

they are all up the street from me by the stock exchange. Unfortunately there are police with dogs, swat members, and some other security personnel.
not to mention they are strapped with M16's so ............I dont think i'll attempt that lol

 

It's a bunch of shit though, gotta love how speculators are getting rich at the cost of people losing their homes and jobs. Someone deserves to go to jail

 

It makes sense....the same thing happened with the real-estate bubble.

 

Our problem now is that no one wants to go regulate the commodities market and are just letting them run wild.

 

Same thing happend in the 80's with oil.

 

doubt they would want to regulate it since companies ( oil ) are making record profits. Maybe that money helps turn the wheel of the economy at our expense?

 

They had a revision to a bill, that Enron used to jack up the electrical prices in CA a few summers ago, it died in the House a few weeks back. I was kind of sad, it was supposed to create more oversight over commodity trading.

 

Just saw a new article on CNN:

http://money.cnn.com/2008/05/29/mark...ex.htm?cnn=yes