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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?


To: Wharf Rat who wrote (4708)9/5/2006 11:23:45 AM
From: Wharf Rat  Respond to of 24206
 
A Closer Look at Oil Futures
Posted by Nate Hagens on Monday September 04, 2006 at 5:52 PM EST



[editor's note, by Super G] From the contributor formerly known as thelastsasquatch.

Fossil fuels comprise the largest commodity markets on the planet. In a world facing an upcoming date when it will have used 50% of its oil (and natural gas), interest in energy futures will continue to increase. And, as energy becomes more precious vis-à-vis dollars, the activity in the futures markets, particularly for crude oil and natural gas, will have increasing impacts on society. Indeed, the amount of finite oil that can be financially controlled by a near infinite amount of money is enormous. The following is a basic primer on energy futures and will be one of several foundational posts linked to a longer upcoming story, "Peak Oil, Investments, and Diversification". I will outline the basics of an oil futures contract, and discuss the risks and rewards of investing in energy futures. The post will conclude with a discussion of the growing paradox between money and energy.
There's more... (2499 words) | Comments (9 new, 50 total) |
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