Donald Johnson

Barron's Banks on $100 Oil

Of course, we were saying a lot of this a month ago. Bubbles burst. Politicians manipulate markets. Speculators rule until they don't. June 23 WSJ.com says Congressional report finds speculators account for 70% of oil futures trading, roughly. NYtimes.com June 23 says Obama has close ties to corn and ethanol producers. Saudis say they'll increase production; China caves and reduces subsidies much earlier than predicted as does India.

If Bernanke and Paulson's jawboning the markets won't depress prices, price manipulation by various consuming and exporting countries' politicians might do the trick.

Institutional investors will sharply curtail their speculating in the futures markets.