jdlech

Gold's Golden Run All Set to Continue

I do not believe speculation is as significant as the author believes. I'm more inclined to believe todays oil prices are mostly a matter of supply and demand. Our ability to pump it, refine it, and deliver it has remained largely flat while our consumption has continued to rise. There's plenty of sources for this assertion on the web - pick whatever source you feel most competent.
The spike in the price indicates that oil is leveraged; a 20% increase in demand resulted in a near 100% increase in price. I don't know the exact leverage mechanism and I'm not willing to claim a guess is fact. We know what is happening, but I have not found any solid numbers that point to why it's happening. Without such numbers, it's all speculation on speculation.