Quote:
Originally Posted by kenny
Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.
www.StopOilSpeculationNow.com. |
GoldMan Sachs says otherwives:
"Goldman Sachs Says Demand, Not Speculators, Cause of Oil Rally"
wait, they made money most money in 2Q as follows :
* betting on oil
* underwriting fees for under-capitalized banks
* reduced taxes
do you think your goverment will go against Goldman Sachs?
of course, there are supply problems, but there is a huge speculator interest too.
Currently USD trades as sort of anti-oil currency due FED and its monetary policy.
As I already posted here:
Quote:
Originally Posted by teomaxxx
Now everyone and his gradmamma are speculating in oil on futher dollar debasment.This is what you got, when you have FED trying by low interest rate policy, to bailout wallstreet banks, without any respect to average Joe, while some of those yet to bankrupted banks are trying now to get out of their own mess by playing a commodity boom too..
Nobody is benefiting from current low interest rates except banks.
The Central Eurobank head told it few weeks ago: "to cut interest rates at this point would be the same as taxing the people to bail out the banks. Cost of extra inflation would be the ultimate sign of moral hazard to save banks."
"Crude is now moving almost reflexively as a sort of "anti-dollar", a currency on steroids with eight times leverage. No matter that the global economy is slowing hard. Bad is good for oil in the topsy-turvy world of commodity funds."
from:
http://www.telegraph.co.uk/money/mai.../ccview109.xml
Of course there supply problems too, but speculation factor is big too as we can see on $5-10 moves in one day, in particular those kind of moves connected to USD/EUR exchange rates...
In addition to supply problems, now you guys in the US got a pay for monetary policy of your institutions and we too as oil simply moves also as currency hedge with huge leverage. |