Quote:
Originally Posted by jimmycooper
You can buy physical oil through futures if you take delivery of the oil, but at that point, the spot price and delivery price will be equal. The spot price drives the futures price and the spot price is driven by supply and demand. The only way banks can impact the spot prices would be if they were to take physical delivery and inventory it.
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I've sort of lost track of what you are trying to argue here. I've already stated it's not a conspiracy so I'm not sure if that's what you are debating or not.
There is no question that money being redirected in the oil futures market raises the final price. That's how markets work.
A very limited number of firms are controlling that influx of money.
As for taking physical delivery, that doesn't matter. Companies will buy and store oil at a high price if the future prices are even higher. That's how a financial institution can manipulate the futures market without ever taking physical delivery themselves.
My position is that there is no conspiracy, but the market is not free at this point and is being exploited by a very small number of players.
I'm off to bed though and that's my last post. Good discussion.