Aceditor

Are Oily Characters Behind Crude's Price Move?

skyemoor- You are right about speculation, it cannot be blamed for the rising prices as more down bets were placed than up bets, when the prices were rising. You are WRONG about demand though, the IEA forecast global demand to grow 0.9% this year, 1.1% next year, most of the demand grow coming from countries that subsidise gas.

Are Oily Characters Behind Crude's Price Move?

I'm afraid the only bubble here is the one you live in... US demand may have declined but 2008 demand has increased. Supply has increased only slightly this year after 4 years of flat production. The reason for the recent price decline is purely fundamentals. US/Euro demand is weakening, but crucially Chinese demand has weakened in the last 2 months becasue of the build up to the Olympics (wondering where the smog was?) this will change as the factories and the traffic are allowed to restart. $130 this time next month.