Replies

What exactly is being done to 'manipulate' the world price of crude? Is someone, somehow knowing what the 'real' future price will be, agreeing to pay much more than that in order to somehow fool everyone? The tankers that are supposedly floating around the seas of the world have no effect on the future prices, they are there now, not then. Any insecurity about the future of oil supply will cause a rise in future price speculation. You can thank Iran for that uncertainty.

Stop and think for a moment. The current price of a barrel of crude is based on the speculation that invading Iran might cause to the daily availability of crude, NOT any real problems related to the actual supply (other than the higher amounts that China and India are sucking up. In addition, the lock that the environazis have on the oil industry has prohibited: domestic drilling, prevented building new refineries for over 30 years and created over 50 seasonally-adjusted regional blends. Also, taxes on a gallon of gas drive the pump price by as much as 50 cents. So, there are a lot of manipulations of the price - the devil's in the details.

Exactly. Futures prices are by definition speculations on what might happen, given current circumstances. Its not 'manipulation' in the sense of collusion by speculators. These speculations are not irrational, they may in fact become real problems in supply, given all the circumstances that you mentioned. When current conditions change the outlook, the futures prices will change.