IF, the "power" that you and the Dims have assigned to these evil "speculators" is that great. Why haven't they "cornered" the market like this a thousand times before?
As of yesterday the "Commercials" in Light Sweet Crude were only net long 12k positions. That is NOT driving this market.
Price is not controlled. Price is determined by VALUE. Value is the balance of Supply and Demand. Value is determined by commercial interests..( Those that actually take delivery of commodities...) LONG TERM. Value is also determined by TOO MANY BUYERS / SELLERS SHORT TERM
Did you know...that most commodities traders lose money? About only 1/3 make money.
FWIW
Value is the perceived balance of Supply and Demand
IOW, not actual supply and demand, but what appears to be the balance between S&D. That's why certain rumors tend to raise the price for a while. Also why Congress and the President TALKING about removing the government obstacles to domestic drilling helped to lower the price by 15% in a short period of time. Were there other factors? Yes, but . . .
“Did you know...that most commodities traders lose money? About only 1/3 make money.”
I’m not surprised. I heard a radio caller say that storage for oil speculation costs 10% per year. It would be easy to lose money. Only the ‘Big Boys’ should try oil speculation, people who know the market inside out. And even they should hedge their investments to some degree.
“Did you know...that most commodities traders lose money? About only 1/3 make money.”
Is that true for commodity traders in the oil futures too? Or are they being averaged?