So, Now What?

Why is Libya affecting Oil?

I read somewhere that there is no reason that the unrest in Libya should be affecting oil prices. Libya only exports about 2% of the world's crude first of all. And the real beauty of the situation is that almost all of that goes to Europe.

So why are we paying $4.18 a gallon? Because commodities traders use this as an excuse to drive up prices. I agree with the author that these folks who are buying oil in principle and then selling it for a profit should be required to take delivery of the crude before they could sell it. That would cut down significantly on the number of people jacking around the price and keep it more stable.

Makes some sense to me.

posted by Shane @ 7:42 AM