[jyl]

As more of the volume in the oil futures market (or any other futures market) is financial players buying for investment and speculation, rather than physical producers and consumers buying for operational hedging, I believe the market will tend to be more volatile, more correlated to other financial markets (including inversely), and less correlated to current supply and demand for the physical commodity.

My understanding is that in the oil market, the financial players now far outnumber the physical players, in trading volume.

trader, do you agree/disagree?