Opinion

Just who is trading in oil futures?

Posted May 23, 2008 11:00 pm

On the ABC TV network Evening Newscast of May 21, corporate executives of the oil industry were questioned why the price of a barrel of crude oil continues to accelerate daily to the consternation of the trucking industry, the airlines, etc., and especially the consuming public. Numerous "spins" (excuses) were given by big oil executives. It's the law of supply and demand quoted one oil executive. Evidently none of the big oil executives read or understood Samuelson's primer of basic economics textbook.

Consumer demand is down due to escalating gasoline prices, no new refineries have been built in over 30 years, but yet the cost of gasoline keeps rising. Should we surmise demand for gasoline is rising daily, therefore the price of gasoline must also rise?

Could big oil be using commodity trader speculators as surrogates (representatives) to buy crude oil at a lower price, bid the price of crude up, and then sell crude oil futures at a higher price receiving huge obscene profits through the manipulation of the crude oil commodity market? Think about it. Has anyone questioned who these commodity traders represent? Excessively rising crude oil prices affect the economies of the entire world.

R.D. Glogovsky

Huntley

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