[JamesP81]

Where are these hedge funds storing all the oil? No where, of course. They’re buying (and selling) futures contracts. If they buy a contract, they have to sell it before the closing date — or take delivery of the oil.

And it's nice to have someone commenting in this thread who actually knows a little something about commodities trading. I work for a company that does commodities trading (we're into agriculture commodities, though). Having gained a simple understanding of commodities trading, I now know that this whole speculators did it thing is, as you say, a barrel of something that smells.

[RSmithOpt]

What's really interesting is that the LSM and the public have no clue that it only takes 3-4 off shore hedge fund managers to agree ahead of time what price to sell those futures between themselves.

Do this with a few hundred million over and over and the price continues to up and profits are made on the books.

Then at a predetermined point agreed upon by participating managers....those contracts are dumped to someone else with a small loss of very small gain.

Then short the commodity and never physically posses one barrel of oil or one gallon of wholesale gasoline.

Since OTC contracts aren't monitored (who and how much) the commodities market is open for exploitation like we are seeing.

Do not think that OPEC and Asian countries aren't playing in this sandbox too.

[dirtboy]

Having gained a simple understanding of commodities trading, I now know that this whole speculators did it thing is, as you say, a barrel of something that smells.

Google Amaranth natural gas 2006 and get back to me. This was done before in the natural gas markets.