That’s right, it’s a total myth. For those of you who are unfamiliar with how the commodities market works, here’s a primer. If you are a speculator who thinks the price of oil is going up, you have to find a speculator who thinks the price of oil is going down.
Got that? You have to buy oil futures from someone else – another speculator – who thinks the price of oil is going to drop.
What is being experienced here is the laws of supply and demand when it comes to commodities. If the price of oil is going up, there are more people who want to buy it from the people who have it. Those selling, are actually betting the price is going to go down. There is no conspiracy out there to artificially increase the price of oil.
When the price of oil dropped from $145 per barrel in July of 2008, to $50 per barrel in Nov. 2008 (a short four months) did you ever hear the media claiming speculators were driving down the cost of oil?