Too many people believe that supply and demand versus price means they move equally and linearly.
A small move in demand nearly equaling the total available supply will create a skyrocket in demand, of any product that doesn’t have much elasticity in demand.
The spot market is a market for actual users of the the oil. It is not a market for speculators unless they have storage capacity and see a significant contango. Even then, it is quite limited before storage capacity runs out or becomes too expensive.
Given that the spot market is not a speculators market, and that the spot market nearly always matches the near month futures market, I do not see how the claim of price driven by speculators and not real supply/demand holds any water.
“Given that the spot market is not a speculators market, and that the spot market nearly always matches the near month futures market, I do not see how the claim of price driven by speculators and not real supply/demand holds any water.”
Thank you kind Sir.
Guess donations from Wall Street are down so Barry is doubling down on his finger pointing game via “journalism”.
Did you mean demand or price?