/*Oil production hasn't increase in three years.
The price of a commodity is how much a customer is willing to pay for it, not how much you want or wish it would cost.
Demand is still increasing in China, so I guess the price isn't too high.*/
I am not gonna debate on how much has oil production increased over last 3 years. A basic googling would give out these.
Can you please explain your demand theory with respect to paper oil i.e. 'oil futures'?? Futures are exactly that: speculation. Now its the first time ive heard of speculation being linked to demand
Speculation is like trading in shares. A company's performance is not reflected always by its share price, and the share price is always a reflection of the market's 'sentiment' of that company. So since the world obviously 'feels' that oil might not be there in next 10 years, are people buying it in larger quantities, thereby driving up prices? An obvious NO!!! The price of oil today is high because some ars***** has betted on it being 150$/b in the next 2 months.
As I mentioned before oil demand over last 1 year has risen by only 8%!!!! now how can 8% demand rise explain a price increase from about 20-30$/b to 140$/b?????? Which market works like this????
As we speak today the oil demand has actually fallen... now why doesnt price fall by as much????
We surely need to ask and answer these kinda questions.