As the scandal of alleged price-fixing by major oil companies deepens, the AA said greed on the part of speculators risks destroying the consumer market and hampering the UK economy.
The traders buy huge quantities of petrol on the open market and store it until the price goes high enough to make them a large profit.
This is very different from the BP/Shell thing. And it\’s also obviously bollocks.
It is of course true that holding physical stocks can increase the price: hoarding can indeed do that as opposed to futures speculation.
However, you\’ve got to know that prices are going to rise to be able to make money doing this. And given that we cannot know the future there\’s obviously going to be some people attempting this who will lose money doing it.
If people were doing this in large enough amounts that they move the whole market then again, that might be different. But are they really trying to allege that there are speculators working in that large a size?
Anyone seen the details of what they are alleging?