On Tue, 20 Jan 2009 19:12:55 -0500, "JoeSpareBedroom"
wrote:

"jps" wrote in message
.. .
On Tue, 20 Jan 2009 18:24:32 -0500, "Eisboch"
wrote:


"jps" wrote in message
...


That's what caused $4 gas, not supply/demand. Get an education
please.

Please explain the drop from $140/barrel to $34/barrel when the demand
tanked.

Eisboch

Concurrent with congress announcing that they were going to
investigate why oil prices were rising while demand was dropping and
supply was increasing.

That's not a commodity market. They were trading contracts as
investment instruments.

There were many investment banks and large funds investing in oil
futures that had no interest whatsoever in purchasing oil.

Do a little research and you'll find plenty of info...


If I recall correctly, Eisboch doesn't agree with that theory, even though
many experts in the oil business do.

It's the only real-world explanation there is. Oil prices became
unhitched from supply/demand and the only way that happens is when
participants are speculating.

THey now know that huge institutional buyers were buying contracts as
if they were stocks. They had no interest in holding the millions of
barrels of oil they were buying.