Strangely, the current run-up in prices comes despite sinking demand in the U.S. “Petrol demand is as low as it’s been since April 1997,” says Tom Kloza, chief oil analyst for the Oil Price Information Service. “People are properly puzzled by the fact that we’re using less gas than we have in years, yet we’re paying more.”
Kloza believes much of the increase is due to speculative money that’s flowed into gasoline futures contracts since the beginning of the year, mostly from hedge funds and large money managers. “We’ve seen about $11 billion of speculative money come in on the long side of gas futures,” he says. “Each of the last three weeks we’ve seen a record net long position being taken.”
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Outrageous !
ROFL. What is with the innumerate Left and their knee-jerk blame of “speculators” for every price move?
Try “currency destruction,” and “lack of supply” first… speculation is a gnat on an elephant’s ass compared to those economic metrics.
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Jake,
not a left issue….speculation that hurts America is un-American.
there is no lack of supply or consumption issue in America.
Currency has been stable for a few years between 73 and 85 for the greenback…
the big oil majors funded “left green groups”
to reduce the amount of refineries from 300 to less than a dozen over the past 50 years keeping a leash on price.
Wake up moron.
If you really think “speculation” is to blame for current oil prices, you ought to give your Series 7 and 63 in shame, or start wholesaling mutual funds.
Seriously, this does not even rise to the level of conspiracy nonsense. This is more like innumeracy nonsense.
Do you know what the level of cash delivery oil trading is ALONE in this here market?
Further, you should keep the dimwitted conspiracy crap to yourself, as it makes this site (and our brand) look like a bunch of ZeroHedge nutters, save without the tenure.
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The dollar index has gone from $120 in 2002 (when oil was below $20 a barrel) to as low as 71.50 or so in early ’08 (the LAST time oil soared to the stratosphere at $147/bbl).
That’s real numbers, that’s EVIDENCE.
That’s what people want to trade on, not loony bin men in black leftist theories.
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