Oil Thread 12/11/06 DRIVE FOR $5 IS DEAD

[1EZduzit]

Originally posted by: blackangst1

Originally posted by: 1EZduzit

Originally posted by: crownjules
A lot of this boils down to one thing alone: ignorance. I wish I could succinctly explain the futures market. This is where the price of oil is determined. OPEC, Exxon, Joe the gas station owner, SUV driving Molly - they can only do so much to effect the price. It is the expectations of the oil speculators (traders) and how they interpret news of supply and demand that sets the price.

Maybe, for everyone's benefit, I'll take some time to write up how the future markets operate - just as an FYI. I don't know if anyone other then me has experience with them and would do a better job, but some explanation is better than none.

I think that if it wasn't for the futures market the prices would be much more stable. Right now if some bad news hits the market any old fool can get in the market and sell something he doesn't even have. It has nothing to do with the actual supply or demand, it has to do with FEAR and fear is a commodity that CAN be manipulated.

Uh...I think you need a refresher course on commodities trading as well I say that in the kindest way...

LOL, if we all knew what we thought we did about commodities trading we'd all have our toes in the Carrabeian, sipping on a pina coldas, and trading commodities on our laptops via a sattelite link.

 

[crownjules]

Originally posted by: 1EZduzit

LOL, if we all knew what we thought we did about commodities trading we'd all have our toes in the Carrabeian, sipping on a pina coldas, and trading commodities on our laptops via a sattelite link.

Who says I'm not...

We're just discussing the mechanics of the market (or at least I am). I've made no allusions as to where I think price is headed, other then in a retrospect fashion after Dave posts one of his articles with absurd claims attached.