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Very interesting, but you didn't really answer the question. Is real-world oil (mainly) priced on fundamentals, or is there really a (substantial) influence on pricing played by speculation in the futures market?

From your answer-essay, I would still have to guess that oil is, at the day or week of reckoning, priced by demand. Short of actual large-scale hoarding (longer than, say, 30 days -- which to me sounds implausible), I can't see how speculators could cause oil to change hands at a price very far from the one dictated by the laws of supply and demand.

by Ralph on Mon Mar 31st, 2008 at 04:37:24 PM EST
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