I watched the 60 minute report on it recently and im just confused how a bunch of future commodity trading made oil so expensive. Im writing a paper on high oil prices so im trying to understand why it got so high.
Thanks
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1 Response
The future market of communities reflects the value of the US dollar for the most part, since most trades are done in dollar term. The dollar has been in the downward trend since the Bush’s first term. Obama was elected with hope that why the oil prices were down for a while. Now the hope is gone, hedgers and speculants are active to trade dollar for gold, oil and commodities again.
Posted on May 1st, 2010 at 4:30 am
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