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To: SampleMan
The trick is to protect their capital investment from falling oil prices. How? Sell vast quantities into the futures market

The problem is that a futures market for an untested fuel production system doesn't exist. Nobody is going to take the other side of the counterparty risk.

8 posted on 04/19/2006 6:25:27 AM PDT by Rodney King (No, we can't all just get along.)
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To: Rodney King

Its not an untested product. Its oil. You are selling oil for delivery on a futures market. What does the buyer have to lose? They will only pay if there is product to take possession of?


21 posted on 04/19/2006 7:42:04 AM PDT by SampleMan
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