A Few Speculators Dominate Vast Market for Oil Trading - Washington Post

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/20/AR2008082003898.html?hpid=topnews

Regulators had long classified a private Swiss energy conglomerate called Vitol as a trader that primarily helped industrial firms that needed oil to run their businesses.

But when the Commodity Futures Trading Commission examined Vitol's books last month, it found that the firm was in fact more of a speculator, holding oil contracts as a profit-making investment rather than a means of lining up the actual delivery of fuel. Even more surprising to the commodities markets was the massive size of Vitol's portfolio -- at one point in July, the firm held 11 percent of all the oil contracts on the regulated New York Mercantile Exchange.

The discovery revealed how an individual financial player had gained enormous sway over the oil market without the knowledge of regulators. Other CFTC data showed that a significant amount of trading activity was concentrated in the hands of just a few speculators.

The CFTC, which learned about the nature of Vitol's activities only after making an unusual request for data from the firm, now reports that financial firms speculating for their clients or for themselves account for about 81 percent of the oil contracts on NYMEX, a far bigger share than had previously been stated by the agency. That figure may rise in coming weeks as the CFTC checks the status of other big traders.

:shrug:

a gallon. To get an idea how much it costs you for a years worth of driving based on the miles you drive and the mileage your car gets check out this spreadsheet. You can enter the number of miles you drive , the price for gas and your cars mileage to get your own gas expense.


When you look at the numbers over a years worth of driving it starts to take on even more significance. The extra money you are paying is going to make some very rich people even richer!

... and I bet you didn't even know you were a philanthropist!

(or maybe you're one of those on the receiving end of this equation.)