Speculators are driving up gas prices - Opinion - Mar. 21, 2012:
So apparently there's a pretty large premium for commodities like OIL because of all the speculation investors.
If everyone wants some long options on oil, or everyone wants an ETF with oil or other commodities, there there will be upward pressure on oil. Unfortunately those same forces should result in a similar downward pressure when they all sell off and the option traders move to short positions.
Unfortunately, if this is correct, the trading in oil might move like it die in 2008 with the drop from ~$150 to $35 per barrel.
Ouch.
Double ouch.
'via Blog this'
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