Thanks...I’ve seen that before. My point is the market is being manipulated not by supply and demand, but speculation and more......wait until the first tropical low develops 1700 miles from the US this summer.
"speculation" is part of supply and demand. Let's put this on a micro scale as a lot of folks don't understand the macro scale. In the commodity market, an American bidder, for example, is bidding against rivals from all over the world, now, more than ever, India and China. The speculation comes in that how much he is willing to bid to buy that barrel versus let someone from China buy that barrel. He has to speculate how much he can spend without risking going too low, and letting someone else get that barrel of oil, or going to high and paying too much and paying too much against the market. This challenge is multiplied when the dollar is worth less against the competing currencies (albeit, it is only a few percentage points off right now), so the currency in China is worth more against our bid, and thus, they are willing to bid more.
This isn't much different than if you were bidding at a car auction for your favorite GT500 Mustang. You have other people who want it and you would want to bid high enough to bid out the other bidders, but not so high you exceed the value of the car.