Barry Ritholtz weighs in on Oil Prices and Speculation:
Speculators & Oil Price Spikes, Part II
Excerpt:
"Why is it that market-worshipers claim fundamentals are responsible for equity prices, but speculators are to blame for Oil prices?
Bill King goes even further: "There is a fervid, global crusade, especially by politicians, to pin escalating oil prices on speculators."
On the other side of the argument, George Soros warns Speculators are largely responsible for driving crude prices to their peaks in recent weeks. And Germany has called for ban on oil speculation altogether. (See John Authors video here)
My own view is that speculators have contributed to the price to some degree, but the tight supplies and freefalling dollar get more blame.
This weekend, John Mauldin looked at a variety of factors impacting oil prices, and if you missed it over the long weekend, its worth a few minutes of your time.
Rather than adding to the noise, lets look at a few charts — both pro and con — that may reveal some insight as to the impact of speculators….
To see the charts and more links, visit Barry’s Big Picture.
