WASHINGTON -- Two economists at the St. Louis Federal Reserve have published findings that indicate that Wall Street speculation is responsible for 15 percent of the increase in oil prices over the past decade, a finding with significant implications for the recent sharp rise in gas prices. According to St. Louis Fed economists Luciana Juvenal and Ivan Petrella, speculation in oil markets was the second-biggest factor behind the past decade's price run-up, behind increased global demand for oil, which accounted for 40 percent of the increase. "Speculation was the second-largest contributor to oil prices and accounted for about 15 percent of the rise," the economists wrote. "The effect that speculation had on oil prices over this period coincides closely with the dramatic rise in commodity index trading -- resulting in concerns voiced by policymakers." http://www.huffingtonpost.com/2012/03/20/wall-street-speculation-oil-price_n_1367896.html
Or the Obama administration's rejection of the pipeline infrastructure necessary to supply Canadian oil sands crude to US Gulf Coast refineries ? Or the Obama administration's open embrace for higher consumer energy prices as a mechanism to curb fossil fuels consumption ? Smart speculators are simply taking queues from the current US administration and the Iranian geopolitical dilemma.
Ahh...the dem's are at it again. Blame blame blame. How is it even possible for them to conclude this?? For every buyer there is a seller and in the futures market, # of longs = # of shorts. I guess we can blame the speculators for AAPL hitting over $600+ as well! Or wait, maybe they make incredible products, have no debt, cheap valuation and now a dividend.