15.03.2012 - Who controls the price of oil?
Once there were multiple oil cartels, each determining their own production rates and price per barrel of crude. Because they sniped at one another and caused a lot of wild fluctuations, OPEC was formed to bring some stability to the situation by controlling overall output and calling a singular price. That all changed in the mid 1980s when oil went to a world commodity pricing system. The commodities market is a strange place where consumers — big oil companies — write futures contracts for crude deliveries to their refineries, and speculators — non-consumers — gamble on whether the price of crude will go up or down...............................................Full Article: Source
Print