peeker01 wrote:I've been saying this for quite a while. There is no indication that supply and demand should
cause $120 price swings.
http://www.marketwatch.com/story/specul ... 2011-08-26
“In 2007 and 2008, destabilizing financial activity caused oil prices to respectively over- and undershoot their fundamental values by significant amounts,” Ine Van Robays, an academic at the Department of Financial Economics at Ghent University in Belgium, told the Commodity Futures Trading Commission at a conference about commodity markets.
However, she added financial activity in the futures market only typically produces a short-term impact.
“This implies that financial trading matters, although its effect on spot oil prices is only short-lived,” Van Robays said.
Cog wrote:With the exception of some peaks and valleys, I see a general trend for the past 10 years of increasing prices. Hardly seems that the speculators are affecting that trend very much. Its called peak oil for a reason.
peeker01 wrote:Cog wrote:With the exception of some peaks and valleys, I see a general trend for the past 10 years of increasing prices. Hardly seems that the speculators are affecting that trend very much. Its called peak oil for a reason.
Since there has been a 26% decrease in crude prices in the past few months, demand should
have changed substantially. Has it?
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