Gas Prices = Apprehension for Next Season?

[trtaylor]

I'd argue that it *is* supply and demand that have been controlling the price of oil and speculation played a minimal role, if any.

Speculation plays a significant role in all commodity markets. Just the way it is.

 

[sledhaulingmedic]

Speculation plays a significant role in all commodity markets. Just the way it is.

It's hard to believe that speculation wasn't the major force behind the recent wild ride. After all, when the credit markets seized up, there was no money to buy futures on margin and the price of oil went into a tail spin.

 

[ski_resort_observer]

Nothing has changed regarding the oil future traders(the so called evil speculators). They are driven by supply and demand and a big reason the price of a barrel of crude went down so fast was that they started shorting(investing with the mantra that the price was going down) the oil market.

The price at the pump might go down abit more and then will stableize then will go back up. I'm no genius, it's the prevailing forecast.

 

[mondeo]

Demand globally is down, markets always overshoot on the upside and downside.

QFT.

My gut feel is that oil should be at about $80/barrel now, and should have been $120/barrel in the summer. People are missing out on how much the euro has weakened.

 

[GrilledSteezeSandwich]

So you're saying the demand this summer was more than double what it is now???? :???:

No but the price for a barrel of oil was..