Nickname: chk

Review: The mutual funds, hedge funds, etc. are an easy target, but isn't your article overlooking some pretty basic fundamentals? Back when oil was hitting highs we were just entering hurricane season which at the time was predicted to be severd, Israel and Lebanon were at war and BP was announcing they were going to have to shut down part of their Prudhoe Bay field. We flash forward to today, the hurricane season was extremely mild (thank goodness), the fighting in the Middle East hast stopped for now. BP's problems weren't as severe as first predicted and supplies are at percentage year high. There is so much product in some places that companies are running out of storage. In the end it is easy to blame the hot money but perhaps all it does is extend the market a little further than it would have gone base on the fundamentals. And maybe that isn't so bad since it will be the hot money that loses the most.

Date reviewed: Oct 6, 2006 3:20 AM

Nickname: kjarm88

Review: If it's speculators and not supply and demand driving the price then the numbers we should be watching are the actual supply and demand volumes. We should ignore the futures price which is obviously a poor proxy for the oil supply/demand equilibrium point. The futures price obviously says nothing about supply and demand of the product itself, oil, only about the supply and demand of those futures contracts and that speculative money. Where can we get the actual oil numbers?

Date reviewed: Oct 5, 2006 4:28 AM

Nickname: njuraul

Review: I'm wondering if the crude oil price will rebound?

Date reviewed: Oct 5, 2006 3:01 AM

Nickname: enough already

Review: I think the article was excellent. It's time that we stop listening to the government's excuses and evaluations and start opening our eyes to reality and what's really at stake, money. Someone really needs to write an article about this so-called "improving job market." More like outsource the good jobs and high salaries and create twice as more bad jobs with low pay that no one wants.

Date reviewed: Oct 5, 2006 12:39 AM

Nickname: riskassessor

Review: I think the hedge funds and other players who are in for the fast money create the volatility. They amplify the price decrease when demand in the U.S. drops slightly and conversely drive up prices when oil demand increases. Just a few percent oversupply or undersupply can create wild price swings.

Date reviewed: Oct 5, 2006 12:32 AM

Nickname: Frontrunner

Review: Thanks for pointing out the correlation between oil prices and open interest. This gives investors more perspective relative to what really drives prices. It's not always world supply and demand. Speculators have much to do with the equation.

Date reviewed: Oct 4, 2006 4:28 PM

Nickname: rufus

Review: Won't the extreme falling price of oil also hurt areas of the economy? For example making interest rates rise?

Date reviewed: Oct 4, 2006 2:32 PM

Nickname: Bigdogo

Review: The big rally was also a consequence of geopolitical issues. With the end of war and no hurricanes threatening the plants, the risk premium dropped. It's not only money leaving, but a change in fundamentals around oil. It's not all about supply and demand.

Date reviewed: Oct 4, 2006 1:22 PM

Nickname: sleepwalker

Review: It is about time. We are in the business of making real products and services, and would love to see our cost of doing business coming down a bit.

Date reviewed: Oct 4, 2006 10:02 AM

Nickname: happy

Review: Good article.

Date reviewed: Oct 4, 2006 9:43 AM