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2008-07-04 22:38:18
paul386
Member
+22|6667
Oil speculation is the new scapegoat, does anyone care to explain to me how they increase the price of oil? Because I am guessing that half the people who blaim them don't even know what they do.

Oil speculators don't win when oil goes up, they win when they are right.
2008-07-04 22:43:13
S.Lythberg
Mastermind
+429|6868|Chicago, IL
they pay money to place a theoretical barrel of oil in a holding pattern, basically, they purchase oil in the hopes the price will increase. however, this speculation causes an artificially high demand, resulting in an artificially high price.
2008-07-05 00:32:26
ATG
Banned
+5,233|6951|Global Command

paul386 wrote:

Oil speculators don't win when oil goes up, they win when they are right.
Wrong.

Oil speculators buy oil  to be produced into the future at a set price. If they buy at $81.00 per barrel and the price goes up to $146.00 they have won as long as their supplies last.


http://www.reuters.com/article/ousiv/id … 2120071029
2008-07-05 01:07:39
Kmar
Truth is my Bitch
+5,695|7022|132 and Bush

People don't realize that they lose money when they are wrong.. or that the guys who speculate low make money when they are right. There is a lot of confusion it seems.
Xbone Stormsurgezz
2008-07-05 01:21:09
Kmar
Truth is my Bitch
+5,695|7022|132 and Bush

http://biz.yahoo.com/usnews/080627/27_6 … ators.html
Xbone Stormsurgezz

 

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