American Horse
AKA "Mustang"
Speculators can't drive up oil prices unless they have the means to store the oil outside of the commodities market. Inventories are below expectations & the Baltic Dirty Tanker Index is low which means speculators are not renting oil tankers to store oil off-shore. There is a supply problem brought on by government!!!!!!!!!!!!!!!!!!
Not so; although in a commodity futures contract the purchaser promises to take possession at some fixed future date, the purchaser may instead sell that contract and never take actual possession. Speculators purchasing options do not promise to take physical possession of the commodity, in this case oil. They may choose to or they may simply sell the option and reap the profit or the loss making that decision at the options exercise date, and the demand they create in the market can and does drive up prices.
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