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The above transformation occurred in an environment of dwindling excess production capacity in crude and particularly at the downstream sector. This development reduced the cushion of supply security and hence the risk cover on prices to the *upside*, luring both paper hedge and speculative demand into the oil market.
2007-01-16 18:58:44 · 3 answers · asked by Anonymous in Education & Reference ➔ Words & Wordplay
Upside refers to the upstream sector which includes the processors/refineries of oil up to distributors and retailers (gas stations). The downstream sector includes the suppliers/producers of unprocessed/unrefined oil.
2007-01-16 19:25:14 · answer #1 · answered by Willie Boy 5 · 0⤊ 0⤋
That the luring of paper hedges and speculative demend was a good thing for the oil market.
Good Luck!!!
2007-01-17 03:23:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Open market?
2007-01-17 03:03:27 · answer #3 · answered by wacky_racer 5 · 0⤊ 0⤋