I think you need to go back to square one and learn how speculation works. Here’s a good start:
http://money.howstuffworks.com/oil-speculation-raise-gas-price.htm
People who deny that speculation raises the price of oil beyond its actual worth are basically living under a rock.
That's funny. Beyond it's actual worth? That's even funnier.
The CFTC was established by Congress in 1974 specifically to prevent speculation from artificially inflating the price of commodities.
No it wasn't.
The CFTC's mission is to protect market users and the public from fraud, manipulation, abusive practices and systemic risk related to derivatives that are subject to the Commodity Exchange Act, and to foster open, competitive, and financially sound markets.
Source
In fact, at that source, the words inflate, artificially and inflating aren't even there.
But a speculator with the capital to purchase a sizeable number of futures derivatives at one price can actually sway the market.
But a speculator with the capital to sell a sizeable number of futures derivatives at one price can actually sway the market.
A speculator purchasing vast futures at higher than the current market price can cause oil producers to horde their commodity in the hopes they'll be able to sell it later on at the future price.
Or it can cause oil producers to sell their commodity now in the fear they'll have to sell it later on at a lower price.
If they want to sell it in the future, at the "futures price", all they have to do is sell a future.
As a result of speculation among these and other major players, an estimated 60 percent of the price of oil per barrel was added; a $100 barrel of oil, in reality, should cost $40 [source: Engdahl].
I don't know about you, but if I have a product that is "only worth $40" and it's selling for $100, I'm going to go all out to produce more now and I'll be selling those ridiculously priced futures contracts by the tankerful. In reality, I'd clean up.
Thanks, I needed a good laugh.
“People who deny that speculation raises the price of oil beyond its actual worth are basically living under a rock.”
I would rather see the price of gas go up because of speculation. Then by leftist aka progressive epa laws.