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Originally Posted by Mormon Red Death
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For one thing, inventories don't seem to be rising. If the inventory data are correct, consumers were burning all that $135 oil.
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This is not true.
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BP's recent Statistical Review of World Energy points out that while few speculators have been betting on a spike in the price of heating oil, its price has soared even more rapidly than the crude-oil price.
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Is he asking us to believe that the runup in crude has nothing to do with the runup in heating oil? As if crude is not the precursor to heating oil? Moron
He builds a strawman about short-selling and then knocks it down.
He doesn't address at all the huge influx of institutional money into the oil futures market (due to the GOP law), all these buyers that never have and never will actually take on oil shipments. I saw a report that in the last few years there has been an extra $200 billion poured into the futures market that in the stock market would not be a big number, but in the futures commodity market it is a HUGE number.
Sorry that slate piece is shoddy and does not address any of the arguments that others are making that huge influxes of money coming into the futures market is running up the price.