Speculation Actually DOES Drive Up Oil Prices
I first posted about the subject of unregulated speculation being a driving force in the price of oil almost two years ago. This speculation can be demonstrably shown to be disconnected from events in oil-producing regions despite the fact that such events are often used as justification for price increases.
So, seeing this article in the Post today was no surprise to me (emphasis mine):
A Few Speculators Dominate Vast Market for Oil TradingHere's another quote that illustrates how ridiculous the charade that oil prices are determined solely by supply and demand.
Oil roared above the $120 a barrel level on Thursday and gold prices jumped amid mounting geopolitical tensions following Russia’s decision to suspend military co-operation activities with Nato in response to a missile shield agreement between the US and Poland.So, the invasion of Georgia was two weeks ago (and oil went down) but now the situation is making oil go up $6 in one day?