Whitewater
General
news So, what is driving up the oil and gasoline prices?...
Forum: Liquid Lounge
axr6
19012
...with gasoline prices nearing $5 in S. CA the question is timely.

http://www.counterpunch.org/2012/02/28/whats-really-pushing-up-the-price-of-gas/

Excerpts:
"â¦.oil's price shot up because it trades in financial markets, where Wall Street firms and other big financial players dominate the trading of oil, even though they have no intention of ever taking possession of the oil whose contracts they are trading....

Historically, financial speculators accounted for about 30 percent of oil trading in commodity markets, while producers and end users made up about 70 percent. Today it's almost the reverse.

A McClatchy review of the latest Commitment of Traders report from the Commodity Futures Trading Commission, which regulates oil trading, shows that producers and merchants made up just 36 per cent of all contracts traded in the week ending Feb. 14.

That same week, open interest, or the total outstanding oil contracts for next-month delivery of 1,000 barrels of oil (about 42,000 gallons), stood near an all-time high above 1.486 million. Speculators who'll never take delivery of oil made up 64 per cent of the market."

Albert
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