Soros may be buying contracts, but he is just another fish in a black ocean full of sharks and parasites.
Driven by lackluster equities markets and less than a robust investment banking climate, many large institutions, banks and hedge funds are piling into the oil speculation game.
All of this new money is driving the market up, and physical hedgers are being eclipsed by the new black gold rush.
Some firms such as Morgan Stanley have even gone as far as to make preparations to actually take delivery on the contracts, renting warehouse space to store their booty. (Probably a scam to drive more fear into the market...never actually intending to take delivery).
George Soros has an estimated net worth of between 7 to 11 Billion, depending on who you believe.
United States oil consumption in 2003 was approximately 20 Million barrels of oil per day. At todays price that is 1.1 Billion dollars a day.
World oil consumption in 2001 was about 75 million barrels per day...and I am sure its higher than that today. At todays price thats about 4.125 Billion dollars a day in 2001.
George Soros in his wildest dreams couldn't skew the oil market if he tried...even if he threw 50% of his net worth at the market each day in 5% increments, he would exhaust his trading account in 10 days, and at best(worse) have only a marginal effect and a short lived one at that. Further he would be on the wrong side of the trade that heavy long if things pull back...
George Soros might be an A$$hole...but he is not an idiot.
If Bush announces renewed drilling in California, the Gulf and new drilling in ANWAR, watch oil fall like a drake mallard full of nickel #2's at 30 yards hit with a full choke.