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Wednesday, May 4, 2011

Contango

And other issues not commonly understood by consumers about the world oil market
The higher the price of gas at the pump, the more sensitive consumers are to allegations of oil market price manipulation. Most consumers are unaware exactly how any manipulation takes place, but they can't square the doubling of the price of a gallon of gas when the price of a barrel oil doesn't double, so they are suspicious there is a culprit to be blamed. Oil companies become the bad guys as they report high profits.