FeverBuster

Why Are Oil Prices So High? Gold Solves the Riddle

The fall of the dollar value is a catalyst for over investment in oil futures. Just as all of the propaganda from the Middle East or the latest round of "fear" tactics coming from Brazil and their oil strike which only represents 64,000 barrels of oil a day in actual physical loss. This is not even in the same ballpark as to how much demand destruction has occurred from the high prices, yet the considerable fall in demand does nothing to offset the price.

Physical Supply and demand are not at play now. Just oil futures determining the price curve.

Your essay only proves that there is more at play than the fall of the dollar if even gold can not buy the same amount of oil as is did in the past. As I stated before, the over investment of oil futures on the scale of 2X futures than actual supply is where the high price is coming from.