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Only the companies that are actual end users of Crude Oil and its byproducts… should be allowed to trade in it.

March 12, 2012
English: Daily oil prices of NYMEX Light Sweet...

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Only companies that are actual end users of Crude Oil and its byproducts… ought to be allowed to trade in it…  That would bring us back to $70.00 a barrel for oil… or $1.80/gal over night.

Implement in the markets the… precondition that one must have the intent… ability… and capacity… to take delivery of the oil etc in the real world…  As originally, intended… and we would not have the market place manipulations we see now.

There are many studies, which simply put… show that oil is overpriced… and that traders use concern over world affairs in the media to manipulate oil prices either up or down.

Daily troubles around the world do not… as they would claim directly affect the value of oil… and as such… are not truly integral components of supply… demand… or its value… i.e. price on the “market”.

It is the trader’s ability to purchase futures contracts for oil… that they will never actually take delivery of… but, can nonetheless lock up and keep off the market… that allows them to use current negative events… such as instability in the Mideast… in conjunction with the media to drive prices to where they want them.

If commodity trading rules were such that anyone buying futures contracts… must also be an actual end user of said commodity… and have…  the will and the sincere goal of actually take delivery… including the ability i.e.… infrastructure… and… capacity to physically receive delivery as originally intended in the commodities markets… we would immediately see lower stable market prices.

Because…

Obviously, a hedge fund cannot take delivery of 50 million barrels of crude…  However, what they can do is to work with other traders to manipulate prices such that they are then able to profit off the backs of hard working Americans.

The current system of the commodities markets needs to change back to its original intent and design…  Then the prices of oil and other commodities would actually represent their real market value.

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