Thursday, 12 June 2008
Statistical Review of World Energy 2008
BP's 2008 Review of World Energy makes it clear. Oil demand is very tight. BP argues that blaming market speculation for the increased rise in oil prices is a myth. BP argues that the markets reflect the underlying fundamentals and do not create them. Certainly the high volatility of prices is caused by nervous traders reacting to global political or financial signals, but you can not attribute the exponential upcurve of oil prices to their speculation. They are only responsible for the smaller everyday jumps in the price, as they try to make money on market variations.