Oil closed today at about 101$ … on March expiration only … April contract is still below 100$
As OPEC always states, markets are well supplied … they even sell their oil at a discount as otherwise they could not sell it.
Financial speculation drives prices … some analyst think, that about 30$(!) of the price is due to speculation, not real demand.
This leaves to me one question
Why does the US Government … as they intervent eagerly in other markets not take the chance to “test” the oil market?
As we talk about Future contracts, you have the right to DELIVER the underlying. Why don’t they deliver it Would like to see, what the speculators do, if oil tankers line up to deliver SOME oil
Sometimes I think, the next bubble is oil …