Sep 14, 2011
Look at the trends. Supplies go up, supplies go down, demand continuously down, but oil and gas continue to trade up. Not sharply up, but gradually up. Investors buy contracts without ever taking posession of the physical oil. This creates a false demand driving the price up. When the time is right and the market cannot sustain the trend, they sell the contracts making a sizable profit in return and for a time pushing oil prices down. Lather, rinse, repeat.