Just thought I'd mention a quote today from the AFR pg28. Emirates president Tim Clark mentioned (in relation to hedging) "When we enter into derivatives, betting whatever it may be with counter parties who actually control the price of fuel in the first place, you have to ask yourself: is that smart?"
He was referring to the Saudi's being the only ones who can influence and indeed set the price of oil.
Don't believe the constant media rubbish of speculators and wall street pushing the price of oil up.
The saudi's alone are price setter in the oil market, they are effectively the only ones with excess capacity and they post prices (updated often intra daily)for refiners and supply whatever is demanded at that price.
They can move it up, they can move it down, EVERYONE else is a price taker.
So yes oil is a completely rigged market, and yes, when you lose on that oil futures contract your money is going straight to the Saudi's, good luck.