How would you know? I don't work in the pits, I trade over the net.


He made it quite clear. Demand is higher than supply. As long as demand exceeds supply, prices will rise.

You are making zero sense.

World oil prices are not set based on WTI, and have nothing to do with Cushing, Oklahoma's entry point for oil. Per barrel prices are set by OPEC by raising or lowering supply via production quotas, and the rest of the world bases it's prices on that supply and their demand.

I don't want to overstep the debate here by guessing your job, but my gut tells me you're not a major trader. I would say work-from-home portfolio manager. I'll leave it at that. I can't claim to be a trader at all so i'll hand you that cherry to keep the debate honest.

But I digress, you're basically telling me that a senior analyst for Goldman sachs, and the president of Opec don't have your knowledge. It really doesn't make any sense to me how you can take that position.
I've proffered evidence about my assertions of an over-inflated market from some pretty big players who specialise in oil trading, and you're telling me I'm wrong. Actually you're saying the head of Opec is wrong and analysts from swiss banks who move the cash are also wrong. I hate to labour the point but basically you're just saying 'nu-uh'. I accept as much as anyone the material supply demand model, but it isn't the only factor in the equation. The market is getting blown out by speculators. I can't make it clearer than that, and I'm kind of stuck for a reason why a shares trader doesn't accept that component of why the oil market is overheated.

I also don't get what you'd have to gain by denying the weight of that component in this discussion.

I was talking about US commodity market prices.

However, industry experts agree that whatever the storage capacity, the actual quantity of oil held at Cushing has the
ability to move the global futures market.

Tom Kloza, chief oil analyst for the Oil Price Information Service, sees the hub as a realistic starting point for a commodity market often driven by speculation, and sometimes by fear.

"It's the straw that stirs the drink," he said.
Earlier this month, the price of oil was driven to a record high when inventories at Cushing fell to their lowest levels since December 2005.
The amount of oil stored at the hub dropped 1.68 million barrels to 18.3 million barrels, causing the price of crude to surge and close at $81.78 a barrel.
"It's like a stock," Kloza said of the hub. "It has investments tied to it worth trillions."



edit for tidying


http://www.redorbit.com/news/busines...res/index.html

Demand is higher then supply! That was the same scenario with the real-estate markets. It was a matrix that didn’t really exist and was blown out of proportion by the real-estate speculators. Sound familiar? There is an investigation going on right now and it will show that the prices have been manipulated!

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Do anybody still deny that this war was for oil, i hope now

Mccain said it weeks ago that this was was for oil, sadely

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