Is the market pricing of oil a scam?

[loik]

Quote from doli:

Something I'm curious about.
The big contract CL doesn't cash settle, but requires delivery somewhere in OK. My question is: Is there enough storage capacity at that OK facility to handle the deliverables? I know that many positions are closed before delivery time, but is the exchange aware of and compensate for the risk that there might be more deliverable oil than there is storage space?

NYMEX

 

[PARACLESE]

Quote from Bear Plunger:

I agree here. How could they control something that is not theirs? The largest oil companies are not in north america, so control over their actions, and all the politics that surround these companies, is very difficult, even impossible.

impossible you say? If you are in a market you know who your competitors are. Now would it make sense to try and sell your product for the cheapest available price or would it make more sense for you and your competitors to keep the price escalating? Your competitors now are not in competition with you but are your partners. Investing in their infrastructure only makes your policy become law with them. What, did you really think we have relations with other countries and intervene on their behalf because we are empathetic to their democratic cause? nothing could be more delusional. Look up John Perkins, he will tell you all about it. As the price of crude falls you will hear of more pipeline explosions more turmoil in nigerian oil infrastructure. Why nigeria? look deeper.