by Chris Black
Supply and demand for physical products have nothing to do with the price.
The price is not set by consumers or producers.
The price is set by speculators using HFT algorithms to move the price for maximum profit on synthetic contracts traded on exchanges.
99.9% of the daily volume of oil contracts is just computers trading between themselves on a millisecond timeline.
There is no supply and demand fundamental that can be seen in global consumption every millisecond.
So it is all just pure speculation.
Republicans and Democrats both have misconceptions about the energy sector, with the former often downplaying climate change and the latter misunderstanding oil industry operations.https://t.co/c8W98rrenM
— OilPrice.com (@OilandEnergy) October 26, 2023