Meanwhile, back in Kiev....

[pErvinalia]

Why would they buy more? Where are they going to put it?

They don't need to put it anywhere. They sell it on.

Someone has got to put it somewhere, unless we are talking about futures.

[mistermack]

Why would they buy more? Where are they going to put it?

They don't need to put it anywhere. They sell it on.

Someone has got to put it somewhere, unless we are talking about futures.

No, you are assuming that a rising price means more oil was traded. That doesn't follow at all, as I pointed out earlier. Actually, an increase in supply generally means a drop in prices, not a rise.

[pErvinalia]

The price goes up with an increase in demand to buy. Where is this extra demand going to be stored? You said it yourself when you "pointed it out earlier". More oil is being bought to make the price go up. Where is this extra oil going to be stored?

[mistermack]

The price goes up with an increase in demand to buy. Where is this extra demand going to be stored? You said it yourself when you "pointed it out earlier". More oil is being bought to make the price go up. Where is this extra oil going to be stored?

I'm going to have to get back to you on that.
I'm still trying to find out where all the extra houses are being stored in the UK, as the prices are going up at 9% per annum. Maybe they keep them with the bitcoins?

[cronus]

Oil is usually bought on the futures market to prevent price volatility caused by day to day supply/demand issues.

[pErvinalia]

The price goes up with an increase in demand to buy. Where is this extra demand going to be stored? You said it yourself when you "pointed it out earlier". More oil is being bought to make the price go up. Where is this extra oil going to be stored?

I'm going to have to get back to you on that.
I'm still trying to find out where all the extra houses are being stored in the UK, as the prices are going up at 9% per annum. Maybe they keep them with the bitcoins?

House prices go up because there is a shortage of supply. But unless the shenanigans in Ukraine actually lead to a shortage of supply, then rising prices would have to be confined to the futures market, I would have thought.

[mistermack]

House prices go up because there is a shortage of supply. But unless the shenanigans in Ukraine actually lead to a shortage of supply, then rising prices would have to be confined to the futures market, I would have thought.

Well, it's the PROSPECT of possible shortages that has held the current price of a barrel higher than it would have been. And gas too :
http://www.bbc.co.uk/news/business-26418664

The so-called sanctions are small beer, compared to what the Russians are gaining.