<New and (insert adjective here) CAFE StandardsThe Oil DrumWherein lies the military?>

18 comments on The Peak of Light Sweet Crude?

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wkwillis on August 24, 2005 - 9:52am Permalink | Subthread | Parent | Comments top
It's bad enough when our government is screwing with the inflation basket, now the market makers are screwing with our commodity baskets.
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mw on August 24, 2005 - 11:27am Permalink | Subthread | Parent | Comments top
The energy market is a big market; it takes a lot of muscle to screw around with.  I personally think "speculation" plays a much smaller role in the high price of oil than is commonly believed.

Some "speculation" is as a result of hedging - oil BUYERS are buying because they believe prices will go higher; oil SELLERS (including oil producers), so far,  have been unwilling to unload their wares at lower prices.

Of course, some of this movement is caused by emotion and herd mentality too.

Markets are a supply and demand thing. Demand has outstripped supply and thus the futures contracts head higher. Someone believes in scarcity it seems.

Speaking of demand, US total product demand hit a new 1 year high in today's EIA report,  perhaps a new record high, still checking that one.

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