Quote:
Originally Posted by directfiesta
Dummy, they speculate on futures ... ( like future delivery price ).
Could go deeper in the explanation, but you at least admit that you do not have the intellect to comprehend it  |
No, please go ahead and explain how "more people invest in oil company stock" (increasing supply) somehow raises prices. Those of us who just understand basics such as supply and demand would appreciate the education.
If you'd prefer to change the topic and instead talk about futures, perhaps you can explain that. It seems to me, and most simple business executives I'd guess, that if six months ago I prepaid for today's gas at $3.00, I have much less need for $4.00 gas. I already locked in the $3.00 price when I bought the future contract (10,000 gallon prepaid gas card).
To people who just run companies all day, buying and selling things, it would seem that the ability to lock in future expenses at today's prices would tend to even out fluctuations in pricing.
Perhaps you can explain that. Or, you could think for ten seconss and realize basic common sense shows your idealogical blame game to be goofy.