An oil rig overlooking Taft, Calif.
Yesterday (tues.) at 5 pm ET the CFTC announced that they had revised the COMMITMENT OF TRADERS reports for July and re-classified 600,000 contracts as Speculative instead of Hedging. This means that 48% of the Nymex crude oil contracts for July were held by specs, an incredible percentage. I can send you the link to the Reuters story if you like.....no need to post this, just FYI in case you missed it....
I think Market forces are causing the oil slide. Demand is dropping and many developing countries have cut back or eliminated subsidies for fuel. There was a commodity bubble and we're getting a correction. Speculation cannot hold prices up over the long term as there has to be someone to take delivery of the commodity at some point.
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