Blue Scorpion

Speculators Continue to Drive Oil Higher at Risk of Global Recession

When oil shot up by $13 per barrel in one day last week, the spike was attributed to...(drumroll)....sho... who were forced to cover. Hmmm. You mean there are speculators in the oil market who are betting that the price of oil will go DOWN? Here are thought speculators were only responsible for the oil price going UP!

As much as Uncle Sam lies to us every month with the CPI numbers, the one thing both Paulson and Bodman have gotten correct is that the rise in oil price is due to lays of supply and demand, not speculators. The other factor is the plummeting value of the dollar.