Race to the bottom for oil?
I wish my father, and everyone else who had a conspiracy theory about the price of gas, would read this:
Large pension and commodities funds are the big traders and they're seeking profits. They've sunk $105 billion or more into oil futures in recent years, according to Verleger. Their bets that oil prices would rise in the future bid up the price of oil.That, in turn, led users of oil to create stockpiles as cushions against supply disruptions and even higher future prices. Now inventories of oil are approaching 1990 levels.
But many of the conditions that drove investors to bid up oil prices are ebbing.
So they're going to get screwed. And with them, maybe the rest of the economy. And all those union pension funds, that bid up the price of oil and then blamed it on the oil companies.
Natural gas is falling too.
But, of course, it will be Bush telling his buddies in the oil biz to drop the price before the election....
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