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BAR[_2_]

In article , dump-on-
says...

On 3/5/12 8:21 PM, Wayne.B wrote:
On Mon, 05 Mar 2012 09:40:14 -0500, X ` Man
wrote:

In most cases the "speculator" is the logistics manager for some large
petroleum consumer who is trying to do their job by locking up
sufficient future supplies.

I will grant what you say with this modification:

"In some cases, the speculator is the logistics manager..."

======

Let's take an example that everyone understands. Most people fill up
the tank of their car when it starts getting low, possibly less than a
quarter of a tank give or take. However, if there is talk of a
possible shortage or a major price increase, many people would start
filling up more often, oerhaps when half full or even 3/4ths. Does
that make them speculators? The exact same thing happens with
logistics managers who are hired to ensure adequate future deliveries.
Does that cause an increse in demand and increased auction prices?
Of course it does. Does that make them speculators?

And when they sell what they bought on a futures market? They're not
speculating?

We now know why you sold your dad's boat business when he died. You
haven't got a clue as to how to operate a profitable business.

I heard from an oil exec being interviewed yesterday that the oil
companies plan 20 and 30 years out. What they need is stability. They
hate the swings of oil prices just as much as the consumers because one
day the price of oil is $150 a bbl and the next day it is $50 a bbl.
With such wide fluctuations you budget goes in the toilet.