Quote:
Originally Posted by busterb
CNN reported that 30 to 60% of oil cost is from speculation
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A long term contract to provide United Airline with oil is done how? Futures contract - also called speculation. Speculation is buying options (contracts) for oil long in advance. In a world where oil is precious and where so many producers are either unstable (Venezuela, Nigeria, Iran, Iraq) or who have a history of using oil for political purposes (OPEC, Russia, Sudan), then of course future prices will be so high.
George Sr defined a new world order that made the world so more stable. Under George Jr, our world has become increasingly adversarial to Americans everywhere. Of course futures contracts must be higher. Instability (ie "Mission Accomplished") increase oil prices. Notice how we pay because so many once said, “Screw the French, the Germans, the Indonesians, the Arabs, the Russian, the Chinese, South Americans, …” Those chickens are now roosters – demanding more with the same contempt that George Jr once proclaimed seven years ago. Resulting instability means prices will increase – what some call speculation.