Watch for Yourself: 60 Minutes Oil Story Was Spot On [View article]
A steep contango in the futures strip causes supply to be stored rather than available to the spot market, driving spot prices up.
On Jan 13 07:54 AM Gary Lucido wrote:
> 1) No one has ever been able to explain how speculators can influence > spot prices without taking delivery. The reason is that they can't. > It's an absurd assertion. > 2) References to the volume of futures trades as "evidence" that > speculation is driving prices is equally stupid. For every buyer > there is a seller. The volume of sells increased at the same rate > as the volume of buys.
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A steep contango in the futures strip causes supply to be stored rather than available to the spot market, driving spot prices up.
Jan 13 16:10 pm
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All Comments by Isnt_It_Just_Money »Watch for Yourself: 60 Minutes Oil Story Was Spot On [View article]
On Jan 13 07:54 AM Gary Lucido wrote:
> 1) No one has ever been able to explain how speculators can influence
> spot prices without taking delivery. The reason is that they can't.
> It's an absurd assertion.
> 2) References to the volume of futures trades as "evidence" that
> speculation is driving prices is equally stupid. For every buyer
> there is a seller. The volume of sells increased at the same rate
> as the volume of buys.