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Originally Posted by jom  Maybe some "entity" is buying futures at higher rate?
Economics seems to be less influenced by supply and demand than it is speculation these days. Ever since the stock market crashed everyone wants to jump on the next "tulip bulb" frenzy.....
jom |
You're exactly right about supply and demand not driving price....
Whats interesting is prices are now at a level where Shale Oil extraction is doable and the United States and Canada have the largest known reserves on this front. There was much excitement about Shale Oil possibilities in the 1980's but extraction proved to expensive at the time. The oil companies did extensive research and they figured if Oil was continually above $90 a barrel, than this source can come into play. I wonder what developements are being made on this front.