The big trading firms now have nearly twice as many long oil contracts open as they did in 2008,...

|By:, SA News Editor

The big trading firms now have nearly twice as many long oil contracts open as they did in 2008, when oil spiked to $147. Tim Duy thinks this suggests that oil price gains are driven largely by speculation, thus the possibility for a sharp reversal - "the question is whether that reversal comes before or after oil prices bring the global economy to its knees."