Why not take oil off the speculative markets?

Question

The markets are driving oil prices crazy and it has nothing to do with supply vs. demand. Electricity is not traded, why must oil be traded? Can oil prices be set by some means rather than trading its future price?

Answer 1

Oil is traded on a spot basis - not just futures contracts. I don't believe that supply and demand do not partially drive oil prices. Speculators must have parties to deal with (buyers need sellers, and sellers need buyers).

Electricity is not a commodity - if it were, it too would be traded.

Yes, speculators play a role in this crazy situation, but there is plenty blame to go around.

Answer 2

The only reason Oil is even such a big deal right now, is because people keep paying the prices. President Bush, could have stopped this years ago, because some of his best friends are "Oil Kings." But everyone knows that everyone is still going to pay, unless Oil is $15 on day.. OO no!

Answer 3

The crooks rule and they will not let that happen .

Answer 4

Electricity is usually supplied by only one company in a region and the government had to step in to stop these monopolies from gouging their customers. There are many oil companies competing for business nationwide and there is no monopoly. If the feds step in to nationalize oil production and imports by restricting their profit margins, there is no incentive for oil companies to seek out new sources and streamline their operations.

Answer 5

cause the stock holder, and the big wigs will loose money.