Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Toddsterpatriot
When a financial institution goes out and buys an oil storage facility or rents a fleet of oil tankers for the express purpose of holding oil out of the market while 'betting' that the price will increase, they are speculating pure and simple.

It's been estimated that close to 10% of the available oil was being held off the market this way in 2007-2008, certainly enough to drive prices higher and ensure these players won their 'bets'.

30 posted on 04/27/2012 7:08:30 PM PDT by mac_truck ( Aide toi et dieu t aidera)
[ Post Reply | Private Reply | To 29 | View Replies ]


To: mac_truck
It's been estimated that close to 10% of the available oil was being held off the market this way in 2007-2008

10% would be about 8 million barrels a day. Nearly 3 billion barrels a year.

Where did you find that estimate?

32 posted on 04/27/2012 9:23:13 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 30 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson