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Originally Posted by zippyjuan
It is my opinion that most changes in energy prices are caused by market factors- expected changed in demand for example. But I am also concerned that speculators cause the extent of the swings in these directions to be amplified to much more than they would naturally tend to go. Without data to support me, I would guess that the percent of total volume traded coming from investors is much greater than it used to be compared to that bought by companies and businesses trying to lock in future prices on oil they actually intend to use.
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I forgot where it was, and will look for it, but there was an article discussing speculators. And that the Oil prices haven't been based on "supply or demand" for a while now. As basically the market economy has failed in that regard, there is no "supply and demand" pressure on the Oil Market, just speculation of rising prices for summer, etc.