What is a speculator?

As far as financial markets are concerned, a speculator is a person or more likely institution that buys or sells commodities, shares and/or bonds based on factors other than simply analysis. Investors, on the other hand, focus on detailed analysis. Here comes the term "oil futures". This future oil is either unused (reserves) or sitting unaffected in the supplier's tanks and waiting for selling. Therefore, the supplier or oil company actually owns oil and the investor or speculator buys shares of this oil to expect the value of the shares. One of the methods in which oil users can increase efficient operation is "Hedge" when buying oil menu. This means that they will buy a long -term oil contract for the price determined by a partially speculator. Thus, the user expects that this contractual price will remain lower than the prices in the long run, while the speculator expects a more lucrative return on his further contract, because it is higher prices for its last contract.

oil speculators have been accused - some say unfairly - politicians and consumers for oil prices do not come unnaturally high due to accumulation, price grooves and secret agreement with suppliers. Other analysts say that supply and demand is a real culprit, mainly because of the underestimation of the impact that the exploded Asian oil markets had on available oil reserves. Others blame OPEC (oil -exporting organizations). OPEC, suddenly a single bridge influential power on the oil market is now only one third of the driving force for an increase in the price of oil. Supplies and demand, uncontrollable speculation and profit on the part of the oil industry are probably the main factors that contribute to what many call an artificially inflated price of oil.

Meanwhile, the

oil speculator expects the complexity involved in the production and distribution of this important energy sourceAnd so deeply in the flow so that they are virtually impossible to decrypt or control.