Let's see... There must be a joke here someplace. PBS Nightly Business Report says that oil is going higher and that it's not demand and it's not capacity. Oh, it's traders, BUT the report says that it's not speculators, but only traders betting on future demand. Let's see, if I take away demand and I take away capacity and I make sure I have "speculators" definition right; "a financial action that does not promise safety on the initial investment along with the return of the principal sum. Speculation typically involves...the purchase of assets [oil]...in a manner...deemed to have...a significant risk of the loss of the principal investment..." sort of like if the demand doesn't materialize and those traders lose their money. lol! That must be the joke. A speculator is a trader betting on future demand for the asset they bought.
Here we go again. Speculators are driving the price of oil up. The joke's on us.
Oil turns higher after Fed minutes - MarketWatch: "SAN FRANCISCO (MarketWatch) -- Crude-oil futures made a fresh attempt at gains Tuesday afternoon after minutes from the latest Federal Reserve interest-rate meeting, released at 2 p.m. Eastern, showed officials watching the economy for signs of whether to tweak their pledge to keep rates very low for a 'extended period.' Some warned against an early start to rate hikes. After initially deepening losses, oil for May delivery added 20 cents, or 0.3%, to $86.84 a barrel. June gold traded electronically rose $1.80, or 0.2%, to $1,137.8 an ounce from a floor settlement of $1,136."