Would you like to start a free subscription?
Remember me | Forgot password
For full content view: Log in Now!
There is no clear connection between oil futures speculation and oil price. I wrote that in an earlier version of this column. While I believe that supply and demand are the main causes of high oil price, oil futures speculation may play some role. Let me explain.
Oil producers and consumers buy and sell oil futures contracts to guarantee a future price as a hedge against price change. The distinction between speculative (Non-Commercial) and legitimate (Commercial) traders by the US Commodity Futures Trading Commission (CFTC), however, seems somewhat arbitrary, or at least imprecise. A futures position is considered commercial by the CFTC if the trader intends to take physical delivery of oil. In contrast, a speculator uses futures positions solely with the intent to profit from change in the value of oil. How does the CFTC know if a trader buys futures contracts to manage price risk or is in it only for the money?
This area of the site is restricted.
In order to gain access, please either Log
In, or subscribe to World Oil.
Two options are available to you for creating an account.
1. Get a Free Trial Subscription to World Oil Magazine and gain immediate access to select content on World Oil Online.
Start a Free Trial Subscription and gain immediate access to the complete current issue of World Oil Magazine. Plus, you’ll receive 3 upcoming issues of World Oil Magazine in print or digital format.* You also receive access to the Energy Events Calendar, Industry Statistics and WO Wire’s news and industry coverage.
2. Purchase a subscription to World Oil magazine and gain immediate
and complete access to World Oil Online. As a Total Access subscriber
you will have access to all areas of the site available to registered users and
free subscribers as well as having access to such premium content areas as:
Physical copies of this content may be available for purchase. Visit the Reprints & Back Issues section.
If you are already a paid subscriber and do not have access, please email CustomerService@worldoil.com.
World Oil's specialized upstream Engineering Data Tables featuring the Drill Bit Classifier, Tubing Tables and more. Get Total Access today.
Houston, TX - November 4-5
All material subject to strictly enforced copyright laws.
© 2014 World Oil. © 2014 Gulf Publishing Company.