Over the long term, how does speculation affect the price of oil?
February 26, 2009 · Filed Under Investing · 3 Comments
BizAnswers asked:
In the short term, I think it is clear that speculation affects oil prices, but over the long term, I am less than convinced. Specifically, with all derivatives, there is someone on the other side of the deal; it is a zero-sum game unless someone takes delivery. If speculation drove the long-term price of oil, it seems to me that the speculators would be required to take delivery of the oil at some point in hopes of selling it at a higher price. If the speculators are not taking delivery, supply and demand must dictate the price of oil as the long-derivative speculator simply offsets the position of the short-derivative speculator until the contracts settle or expire. Since speculators who do not take delivery are not affecting supply and demand, how could speculation cause a long term increase in the price? News commentators continue to bang the drum of speculation causing the price rises, but I remain unconvinced. Now is your chance to convince me where my analysis falls short.
wine making equipment
In the short term, I think it is clear that speculation affects oil prices, but over the long term, I am less than convinced. Specifically, with all derivatives, there is someone on the other side of the deal; it is a zero-sum game unless someone takes delivery. If speculation drove the long-term price of oil, it seems to me that the speculators would be required to take delivery of the oil at some point in hopes of selling it at a higher price. If the speculators are not taking delivery, supply and demand must dictate the price of oil as the long-derivative speculator simply offsets the position of the short-derivative speculator until the contracts settle or expire. Since speculators who do not take delivery are not affecting supply and demand, how could speculation cause a long term increase in the price? News commentators continue to bang the drum of speculation causing the price rises, but I remain unconvinced. Now is your chance to convince me where my analysis falls short.
wine making equipment
How is the international oil price per barrel calculated?
Pranav asked:
With ever increasing oil prices, i wonder if it is worth buying a petrol car?
visor clips
With ever increasing oil prices, i wonder if it is worth buying a petrol car?
visor clips
Why does the oil price drop after the hurricane?
February 24, 2009 · Filed Under Investing · 7 Comments
hero_gt350 asked:
It’s nice that the oil prices are dropping, but I was just wondering why? Is not the hurricane supposed to increase the oir prices?
wordpress review plugin
It’s nice that the oil prices are dropping, but I was just wondering why? Is not the hurricane supposed to increase the oir prices?
wordpress review plugin
If I am really bullish on the oil price, where should I invest my money?
February 24, 2009 · Filed Under Investing · 8 Comments
anonymous asked:
I am very bullish that oil price will keep rising. How can I take advantage over this rising oil price? Which company’s stocks should I invest in?
funny fortune cookies
I am very bullish that oil price will keep rising. How can I take advantage over this rising oil price? Which company’s stocks should I invest in?
funny fortune cookies
Is it true that the price of crude oil is worked out in a 6 month advance?
February 23, 2009 · Filed Under Other - Business & Finance · 1 Comment
greenjelly asked:
If the oil price is projected so far ahead why does the national petrol/diesel price rise so often in small increments. Could the fuel authorities not work thier increases out on a more once off basis by looking at the forecasted oil price figures.
game system reviews
If the oil price is projected so far ahead why does the national petrol/diesel price rise so often in small increments. Could the fuel authorities not work thier increases out on a more once off basis by looking at the forecasted oil price figures.
game system reviews
What’s going on with the crude oil price? Why is it still pushing up?
February 23, 2009 · Filed Under Investing · 3 Comments
skjhlkj asked:
Can anybody explain to me why is the price of crude oil continues to pushing upward?
The highest price in mid summer was $75, and at the time I thought that was high. Now, it seems the price $75/barrel is like a miracle.
Are we demanding more oil during the winter month than the busy summer season? What is going on? Was there a hurricane hit somewhere that I missed? Is the hurricane season still going on?
I can’t understand the spike in the crude oil price so late in the year.
start an online business
Can anybody explain to me why is the price of crude oil continues to pushing upward?
The highest price in mid summer was $75, and at the time I thought that was high. Now, it seems the price $75/barrel is like a miracle.
Are we demanding more oil during the winter month than the busy summer season? What is going on? Was there a hurricane hit somewhere that I missed? Is the hurricane season still going on?
I can’t understand the spike in the crude oil price so late in the year.
start an online business
Can selling investments that are based on the 5 big oil companies affect the oil price?
February 21, 2009 · Filed Under Investing · 4 Comments
tsloan71 asked:
Is it possible that by selling major oil companies stock and re-fusing to purchase in vestments with those companies would that force these companies to drop the market value for there product? If this resource is being traded as a commodity instead of using the don’t buy gas from that company to force price change. Would it not be more effective if everyone sold stock in those companies and re-fursed to purchase stock or investments with those compnies and sub-companies to bring the price of oil down???
trade the qqq
Is it possible that by selling major oil companies stock and re-fusing to purchase in vestments with those companies would that force these companies to drop the market value for there product? If this resource is being traded as a commodity instead of using the don’t buy gas from that company to force price change. Would it not be more effective if everyone sold stock in those companies and re-fursed to purchase stock or investments with those compnies and sub-companies to bring the price of oil down???
trade the qqq
Why Oil Stock fall despite we in record high oil price?
February 20, 2009 · Filed Under Investing · 2 Comments
Richard asked:
I was surprise to see my oil stock still fall after so news of oil price in record high. Are the company keep all the profit them self and not share to the stock holder?
home theater equipment
I was surprise to see my oil stock still fall after so news of oil price in record high. Are the company keep all the profit them self and not share to the stock holder?
home theater equipment
How do gas stations benefit from oil price movement?
February 20, 2009 · Filed Under Other - Business & Finance · 2 Comments
Pat asked:
Do they benefit if oil price go up and lose if oil price go down everyday because they store their oil in their stations?
Do they benefit if oil price go up and lose if oil price go down everyday because they store their oil in their stations?
How do they manage their profits with price movement everyday?
game system reviews
Do you think the price of oil and gas will ever come back down?
February 19, 2009 · Filed Under Current Events · 22 Comments
Josh3 asked:
What are your feelings about gas prices ever returning to $2.99 a gallon or even $3.50 a gallon. Or will oil prices ever return to below $100.00 a barrell again anytime in the near future?
wine making equipment
What are your feelings about gas prices ever returning to $2.99 a gallon or even $3.50 a gallon. Or will oil prices ever return to below $100.00 a barrell again anytime in the near future?
wine making equipment















