RE:RE:RE:RE:RE:RE:RE:RE:US."I agree that oil is a good hedge against inflation, but if I was using oil contracts for that purpose I'd be buying out into the future, not near term. I'd also be buying gold and silver, neither of which are at their highs."
I think they don't buy oil dated out into the future as a hedge against inflation due to the lack of trading liquidity in the farther out months. Near term has so much liquidity.
Investment banks are smart....oil is better and easier then gold/silver to manipulate as oil has so many end users...double whammy.
Delta airlines competes with Goldman Sach for oil contracts...only goldman doesnt use the oil lol. Goldman just makes sure it costs more for Delta to hedge by jacking prices up.
Consumer is the one that loses...Wall Street has made sure no government tackles all the maniplation on these markets.
Look at the 2008 financial crisis. Oil collasped partly due to no liquidity...so investment banks had to sell their oil contracts.