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To: I Drive Too Fast

If the futures market is suppressed, that will just move volatility into the spot market.

One purpose of the futures market is to smooth out prices. If 'speculators' are buying oil because they think it will be worth more in the future, that raises the price now, but lowers the price in the future.

12 posted on 05/04/2006 3:56:16 PM PDT by proxy_user

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To: proxy_user

Thats it! Weve seen the top. Next stop $60 and stock market at new all time highs.

14 posted on 05/04/2006 3:57:39 PM PDT by samadams2000 (Somebody important make The Call.....pitchforks and lanterns.!)

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To: proxy_user

If 'speculators' are buying oil because they think it will be worth more in the future, that raises the price now, but lowers the price in the future.

I'm obviously getting stupid because I have no idea how that equation works.

16 posted on 05/04/2006 4:00:42 PM PDT by Glenn (There is a looming Tupperware shortage. Plan appropriately.)

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