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In several crucial ways, commodity derivatives differ from conventional insurance. Ordinary insurance companies only insure against bad events, which no one wants to happen: death, fires, ships sinking. If these things happen the insurer loses; the insured is compensated. The bad events can be made less likely through precautions, but cannot be made more likely except by heinous crime. And no one can make a lot of money by being spectacularly right.
FOi editorial stirs the energy speculation hornets nest.