My point is the real story of oil will not be that it was what the rich speculators screwed us over with--it will be that it's the most precious resource in history and we will have squandered it all in a span of about 200 years.
When there's always less of something than there was before, and there are always more people wanting more of it than the day before, what do we expect should happen to prices?
"The knowledge and prudence of the poor themselves, are absolutely the only means by which any general and permanent improvement in their condition can be effected." - Thomas Malthus
We should not be paying more because someone "expects" something. If only those who actually took physical control of oil was in the market, it truely then would be more of a supply and demand market. Right now nobody is having any problem getting oil but yet we are paying a pretty large premium over just a few weeks ago.
They "control" 60% is what I think was meant by that statement. A single barrel of oil is sold many times over before it ever reaches the market. Does it make sense to have these "middlemen" involved?
People like too make oil speculators the boogey man but they are no different than what speculators. When they see a drought or a flood or anything that will cause less wheat being produced the price of wheat goes up. Same thing with oil, if they see turmoil in oil producing regions or a president of the US that is anti oil they see shortages coming and bid the price up. It's just as simple as that.
1970s: The Hunt brothers and the silver market
Brothers Nelson Bunker Hunt and William Herbert Hunt attempted to corner the world silver markets in the late 1970s and early 1980s, at one stage holding the rights to more than half of the world's deliverable silver. During the Hunts' accumulation of the precious metal, silver prices rose from $11 an ounce in September 1979 to nearly $50 an ounce in January 1980. Silver prices ultimately collapsed to below $11 an ounce two months later, much of the fall occurring on a single day now known as Silver Thursday, due to changes made to exchange rules regarding the purchase of commodities on margin.
Cornering the market - Wikipedia, the free encyclopedia
So what the hell is going on?
The normal rules of Supply and Demand aren't working. It would seem Speculators are circumventing the process, would anyone agree?