Originally Posted by
CIRF
ZERO, crude oil, gasoline, diesel and any other mainstay commodities in the petroleum sector of the economy are heavily effected by futures speculators. These speculators manage investment funds that make a lot of money for themselves and their clients who are making short term investments. As much money can be made speculating that the petroleum commodities are going to go down as can be made when petro commodities go up. One of the differences is this, the prices come down much more slowly than they go up. In addition, the incremental changes of petro prices going up are much steeper than the increments in which they come down.
Crude, gasoline and diesel, etc., are traded very similar to how grain is traded. Fund managers use energy futures as investment tools for their clients the same as they use and play the stock market. Same concept, different commodities.
Bottom line is commodity speculators, brokers and their investor clients have a huge influence on commodity prices whether it be petroleum, grain, pork bellies, etc.