Hey folk
This is not a market update, just some thoughts i had in my mind on crude oil.
Crude oil is a great resources that human being found out to do many things like generating power, power motor vehicle, the by product can be use to make alot of things like gas, heating oil and etc. There are so many things that can be produce and used from crude oil. Which also mean there are so many users that buy crude oil from the crude oil market and wait for delivery. There are also many countries that are 'lining up' to buy crude oil so that there economy can run properly.
Crude oil also affect our economy. For example, if the price of crude oil rise too high due to speculation, then inflation will go high. Our food in hawker center will be more expensive, pumping petrol will be more expensive and whatever will be more expensive.
If there are always so many people or countries or businesses or hedgers that want to buy crude oil, there wont be a problem with liquidity in the market. If there is no liquidity problem in the market, why should we allow speculators that only aim to make money from the fluctuation of prices to be in the market? They are just merely trying to make money themselves without considering the impact that they will create.
Unless you can prove that you are going to take the delivery of the crude oil or hedgers, why should you be in a market that could drastically affect the economy of the world.
So i hope we can do something about it or whoever that have the authority can help me bring across the idea. Thank
