Commodities traders are the score keepers on gas prices
Gas prices go nowhere without trading actionCredit: Ryan Canady
You stand in the sizzling heat of another summer day next to our car filling up the gas tank. Not only are you tried from a long day of work, but there are so many other things that you have to get around to doing. Then you look up and see that gas prices are on the rise once again. Great, one more thing to add to your plate of worries.
This is the situation for many of us in our present state of affairs. It just seems that gas prices go nowhere but up while we are having trouble making ends meet even without this extra problem. You might have wondered who even comes up with these gas prices in the first place. Many others have questioned this as well, and the answer may surprise you. The ultimate judge of where gas prices will be are commodities traders.
Who Are Commodities Traders?
Being a commodities trader is a unique job. These are people who are trading different basic commodities such as gold, oil, silver, cotton, orange juice, coffee, etc. to make a profit. It is their job to set the prices of all of these different commodities. Commodities traders do this by buying or selling the different goods at certain prices based on supply and demand. In short, it could be said that commodities traders are just being the score keepers for how the market is pricing these goods. However, it is interesting to note that many believe that commodities prices are not always accurately reflected by these trades. As a matter of fact, many believe that traders often allow personal greed interests to influence gas prices and the price of many other basic goods. Arguments could probably be made both ways on this one, but there is no doubt that commodities traders do have huge influence on gas prices.
Next Time You Are At The Pump
The next time you are at the pump, perhaps you will have a better understanding for how the whole system works. It is quite obviously the case that a commodity trader has played some role in the gas prices that you are paying at the pump. Perhaps you will start to follow the markets more closely, or you might even decide to get in on them for yourself!