Growth in oil futures trade outpaces oil consumption
Here’s a look at the average daily volume of oil futures on the NYMEX expressed in terms of global consumption of oil. As the chart makes clear, the number of paper barrels traded every day on the NYMEX is now over three times the number of actual barrels consumed every day worldwide. On Friday, as oil surged to a record $139 a barrel, the volume on the NYMEX was over 5.2 times average daily consumption. Not that the recent price spike has anything to do with speculative money pooring in you understand, its all about fundamentals, supply and demand old boy.