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To: ex-Texan
The U.S. Senate claims oil prices are driven by speculation.

What story were you trying to link to? Your link is to the home pages with many articles.

8 posted on 08/26/2006 9:45:07 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
One explanaton is there is a Contango situation in the oil futures market. An investment bank can buy oil on the spot market and sell a futures contract for future delivery and make an almost riskless return of over 10%. The game stops when all the storage capacity has been used up - or at least it should!

There have been estimates of as much as $20/barrel on the current price is caused by these trades.

17 posted on 08/27/2006 5:59:09 AM PDT by Timocrat (I Emanate on your Auras and Penumbras Mr Blackmun)
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