Quote:
Originally Posted by trader220
That really depends on your definition of who is a financial player and who is a true end user. The latter is easier to define. How would you position someone like Goldman Sachs’ energy group? Now they have huge clients who are hedgers but they also take the other side of those trades and do speculate in the energy markets.
In theory the more volume the more efficient the market place an the lower the volatility in the market.
I believe that crude and all commodities are mean reversion markets so in the end supply and demand will rule the day. But as you can see in the market right now, mean reversion is a long term view of the markets and there can be long stretches of time where prices are far out of long term line.
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I think crude oil is the highest volume item on earth & it's volatile to the point of crippling the economy.
How does this differ from (illegal) price fixing?