On Mar 9, 2011, at 8:37 AM, brad wrote:
>
> The long and the short of it is that there is a net buying bias among
> mostly financial funds that represented a record-smashing 335,674
> contracts or nearly 335.7-million bbl worth of crude. Attaching a
> hypothetical value of $102 to each barrel of crude means that among
> speculators and financial investors, there is a buying bias of about
> $34-billion. "
>
> http://blogs.opisnet.com/archive/2011/03/08/living-long-large-in-the-days-of-rage.aspx
In other words, since beyond "speculators and financial investors [but what can it possibly mean to be a "financial investor" in a commodities market?]" there are only hedging producers, in the relatively near term all that pre-sold output can be expected to show up in the market, driving down prices. Who has a better view of future oil market conditions--financial speculators or producing cartels?
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90