Oil was at $150 when the GFC hit. Every bank that went bankrupt in the USA got caught trading it. As soon as the sh.... hit the fan and they tried to unwind their positions, oil plunged to just above $50. According to you guys, overnight we went from a massive under supply to a massive oversupply. Bull sh...t!
The price of oil is set by speculators. End of story. Unfortunately, the world has learned nothing from the GFC. Speculators wagging the world. The futures markets were not set up for speculators. they were set up for SUPPLIERS and BUYERS to lock in their prospective prices. Banks did not trade. They took and placed orders from SUPPLIERS and BUYERS of the underlying commodoties. The futures markets now are nothing but gambling houses.
Look at the nonsense sprouted that people buy oil to store it because the future's market is higher than present price. It beggars belief that people actually believe the B s.....t expounded by so called experts.
Pear
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