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An Oil Price Revelation

Mike

Well-known member
While watching CNBC this morning an oil economist, didn't get his name (saw the interview late), stated that oil futures were the only mechanism that keeps oil prices in line with demand.

His analysis was that without futures and speculators, those who use oil long term would be buying huge amounts of oil....and..... hoarding them for future use.

He also stated that prices could possibly be double the amount they are now because of short supplies and high demands without speculators and futures.

A proposal made in D.C. this week to allow oil commodity speculators to only buy futures if they would actually take possession of oil was interesting also.

That would put oil futures only in the hands of sellers.........Big Oil.
 
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