My colleagues here and elsewhere have assured me oil prices move only on supply and demand and not on speculation. I note, however, that we are seeing a curious thing. Oil is down this morning about $7 a barrel as hedge funds unload their positions to raise cash.
How odd. Demand must be dropping rapidly world wide somehow in a coincidence with hedge fund selling. Since we know that hedge fund speculation can't raise the price of oil, it must be that oil prices are only affected in the downward direction by speculators selling.
So, the answer on speculation and the price of oil has finally been settled. Speculators only affect the price of oil when they sell, never when they buy.
Simple really.
boont
How odd. Demand must be dropping rapidly world wide somehow in a coincidence with hedge fund selling. Since we know that hedge fund speculation can't raise the price of oil, it must be that oil prices are only affected in the downward direction by speculators selling.
So, the answer on speculation and the price of oil has finally been settled. Speculators only affect the price of oil when they sell, never when they buy.
Simple really.
boont