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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (31426)7/9/2008 4:59:56 PM
From: Grommit  Read Replies (1) of 78683
 
speculators.
be sure to click on the cnbc video.
energybulletin.net

economist.com

More importantly, neither index funds nor other speculators ever buy any physical oil. Instead, they buy futures and options which they settle with a cash payment when they fall due. In essence, these are bets on which way the oil price will move. Since the real currency of such contracts is cash, rather than barrels of crude, there is no limit to the number of bets that can be made. And since no oil is ever held back from the market, these bets do not affect the price of oil any more than bets on a football match affect the result.

is there oil hoarding by the evil speculators?
don't see it here:
tonto.eia.doe.gov
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