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Originally Posted by ASU2003
A few speculators don't drive the price, but when there are enough to buy up any new source of commodity right when it hits the market, they can set the price they want to sell it at. Which is usually the highest price people are willing to pay.
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"The highest price people are willing to pay." I would think that to be the market price.
I want a new Lexus for free, the highest I am willing to pay is still lower than what my dealer is asking. Therefore I don't own a new Lexus. However, others are willing to pay the price the dealer is asking, hence setting the market price. If you introduce "speculators", that won't change what I would pay or what the dealer would sell the car for after his expenses and profit margin.
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Originally Posted by dc_dux
So what regs are you referring to?
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I am not sure I want to get into this trap. Are you suggesting by your question that there are no regulations driving up the price of oil? Or are you simply suggesting that the trade off on the cost of the regulations are off-set by the benefits in other ways? If you are suggesting, the second, I agree there are trade-offs, but the measurement is subjective. You can safely assume that I think the market is overly regulated.