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.
1 comment:
"Speculators" are supposed to guess the future of a market, but what they are really doing is catching up with the truth of our past consumption."
DL
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