[jkarolyi]

"1967 R50/2", thanks for your Porsche metaphor...made this a little clearer for me. Let's take it further.

Your Porsche dealer is located in downtown LA and only has so many parking places. Your lot is full, and you have more cars coming in. You need to lower prices to move your inventory, or lease a lot out here in the IE to hoard Porsches.

I haven't seen any oil tank farms popping up around the country...has anyone else? Are companies really hoarding oil? If all oil is purchased through futures (is it?), then that explains the huge price spike as speculators outbid the oil companies for them. Isn't most oil purchased immediately at the market price or is all oil purchased through futures contracts?