What would be the economic effect of removing oil from the speculative markets?

Question

Does oil have to be a traded commodity? Could we remove it from trading and have some other pricing means? How would the US economy be affected? Global economy?

Answer 1

Simply there will be no today's economy with out oil, It's the vertebral column of today's world and economy,90 percent of today's wealth of big ,health, and rich country consist of oil trade and manufactured,so our world would be very different if we just imagine of living in a world without the black gold"oil"

Answer 2

Easy. Impose Hugo Chavez's Socialist Reforms on the Global Economy...

What you are asking is impossible. Oil trading is the trading of future oil yet to see the light of day. By its very nature, trading oil is speculation. What do you think SouthWest Airlines did when they locked in Oil Contracts for $50/barrel? They speculated that oil prices would rise, so they locked in a position to buy oil for $50/barrel. Too bad for the sucker who sold that contract and now has to cover the difference between $130 and $50.

You question has no answer because to have an answer would be the end of trading. You would have to have a scenerio where Oil is worthless (ie: .01/cent a barrel) for

speculation to be removed from the market.