Who sets the price of commodities?

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October 2016
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I love the commodities market--one of the last great pure-play investments that are out there. The futures exchanges provide a stable, secure platform where buyers and sellers can come together to make a deal. They guarantee both sides of the transaction, and today execution prices are as low as they've ever been. The price is set by the open market. It represents the medium of supply and demand. Oil is at $50/barrel---this is the current demand that is influenced by a host of different things, current inventory levels, projected usage, weather patterns, etc., but ultimately the price is set by hundreds of thousands of buyers who determine what something is worth by what someone is willing to pay for it.

September 2006