Here's what's credible: Some 70 percent of contracts for future oil delivery are now bought by financial speculators - largely big investment banks and hedge funds - who never take control of the oil. They just flip the contract for a quick profit.
Only about 30 percent of oil contracts are bought by a purchaser that actually intends to use the oil, such as an airline. That's according to the Commodity Futures Trading Commission, which regulates trade in those contracts.Twin Cities
The speculation is on the future direction of money, oil is simply the medium of exchange rate stabilization. So big finance needs to hedge the future exchange rates, and what better way to do it then bet on the thing most in demand, and most traded globally.
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