[Marxism] Zero-sum?

Marvin Gandall marvgandall at videotron.ca
Wed Jul 9 07:31:23 MDT 2008

Bauerly writes:

Read the following excerpt from the Oxford Institute of Energy Studies on
role of commodity futures markets in setting the price of oil.



In brief, the oil pricing system witnessed major transformations in the last
years or so which saw the oil market shift from the administered oil pricing
system first governed by multinational oil companies and then governed by
to a marketrelated system in which oil was initially priced off the spot
until the futures market assumed a greater role in price discovery. This had
important implications on the pricing power of OPEC, as will be explained in
the following section."
What is the evidence for assuming the price of traded oil would be much
lower if the market in derivatives were eliminated? I've seen estimates of
roughly $100 a barrel, but I don't know that this is other than another form
of speculation - of the intellectual kind.

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