I didn't read all of everything posted here but I wanted to relay to you a story I was told by a Wachovia Securities administrator back when gas and diesel
were at their highest.
Speculators were buying oil
3 and 4 weeks out but never taking delivery
until the price
reached the point here they could make a profit. With all that oil
sold on paper it was creating a shortage inturn driving the price
up. That's obviously the extremely abridged version.
What I am concerned about now is all this bailout money
the banks got. Several banks have already bought all the oil they possibly could and have it sitting in tankers offshore
waiting for the price to come up. Basically doing the same thing the speculators did, except they are taking delivery
. The kick in the pants is many of the big banks are also involved in the bulk/tanker shipping
industry which means the cost of keeping it on a tanker offshore
is a lot less and they can keep it there indefinitely. Wells Fargo is one of the banks playing this game