[Vermont Lt]

Part of the speculation play is that BIG OIL has their own buyers, and they buy months and years out to secure the price for their refineries.

Lets say for arguments sake that they bought oil futures 18 months ago for July. Lets say for arguments sake they bought options for $40 a barrel. Those options are now worth, what $60? They can sell the options they don’t need, pocket the $20 a barrel and laugh all the way to the bank.

THAT is a big part of how Big oil is making huge profits. They arent really concerned with what oil costs today—they are concerned about getting the oil they need next year.

[Toddsterpatriot]

Part of the speculation play is that BIG OIL has their own buyers, and they buy months and years out to secure the price for their refineries.

A big oil producer would most likely sell oil futures. A smaller refiner, with no production of their own would most likely buy futures.