Quote:
Originally Posted by CrusaderPi
I've always wondered how this works. Seems a little like the boom era real estate market. Lot's of people flipping the commodity, very few actual end buyers.
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While the oil can be traded many times before delivery (leading to high speculator to end buyer), it does have a "shelf life" by which delivery must be taken. You sometimes see price dips at the end of the trading period if there's been too much speculation. I would say that because of this, it's not very real estate-like at all. Supply and demand are matched every month.