So all of these oil futures traders are buying 80$ oil futures. The actual physical price of a barrel is $150+ and the Strait of Hormuz is still closed and doesn't seem it will open any time soon. What happens now? I don't understand finances and futures because I am completely lost as to why someone would bet on $80 a barrel futures.They have to know something we don't, right? Someone who makes a living on commodity futures wouldn't look at the current situation and think that in one month supply will be back to normal.
>>62139557they're trying to suppress the price as long as possible. short squeeze will happen and those two prices will converge making oil go up as they have to buy back at the 150+ price.
>>62139557it's the US Treasury that's buying
>>62139557Trump and friends are manipulating the oil market to make other nations reliant on US oil.Why did he change the Gulf of Mexico to the Gulf of America?Was Venezuela really occupied because of narco-terrorism?Why does Trump want the Panama canal?
Futures are a contract for delivery of a commodity at a certain date in time. Most companies use futures to lock in prices for business and accounting reasons, but financialization means traders get involved too.There are also different barrels of oil. A barrel of Kuwait oil is very different from a barrel of West Texas Intermediate oil. One has to go through the SoH, one doesn't.Anyway there are other ways to deliver oil, and higher prices ARE affecting demand. Prices went up, demand went down, and users are shifting to other energy sources as necessary. So when demand goes down, price comes down a bit too.The real problem you have isn't someone locking in $80 for a barrel of oil next month. You're upset that someone is SELLING a barrel of oil next month for $80 today. It's not even a problem for most producers (outside the middle east) because EVERYONE is profitable drilling and shipping when oil is $80-110.
>>62140185are you sure?
>>62140483sounds based, but will it succeed & how do i profit from it
>>62139557oil bros are the new GME bagholders>MOASS soon brothers
>>62140539GME bagholders are the new bitcoin bagholders
