Who Determines the Price of Oil?
Today, a third party has moved to the table-the New York Mercantile Exchange, a similar operates in London and a new one in Dubai. There, boisterous traders buy and sell futures contracts on the delivery of oil .....
These oil gamblers in New York and London try to justify their frenetic daily bidding by saying that these futures markets provide liquidity, and a clear price for oil. Alright, but who benefits when, how and where?
..... "It’s a big gambling hall," The Washington Post quotes Fadel Gheit, an oil analyst at Oppenheimer. "This time it’s just speculation," Peter C. Fusaro, chairman of Global Change Associates, told the Post, adding, "There’s a large bet out there that prices will continue to trend higher. But it’s detached from fundamentals because there’s no shortage of oil."
http://www.counterpunch.org/2007/11/06/who-determines-the-price-of-oil/