The Return of the Oil Speculators

[Hannah Bell]

There are worrisome signs that commodities speculators are returning to the nation’s fuel markets, pushing prices higher than the normal forces of supply and demand would warrant.

Our primary fuel story this week (click here for page 1 story) quotes an analyst warning that concerns about the future direction of the dollar have speculators rushing back into fuel markets, because a falling dollar leads to rising crude oil prices, opening up the prospect of bigger profits.

You no doubt recall what happened to fuel prices during the last commodities bubble, when speculators ran up the price of diesel close to $5 in some markets, even as demand was diving thanks to the recession.

Fuel prices have been relatively calm for some time, as lower demand and growing supply — and the absence of much speculation — has led to a lower and steady market. But that honeymoon appears to be ending.

After rallying earlier this year, the dollar has been slipping, driven in part by burgeoning federal deficits. And that has attracted the speculators back.

http://www.ttnews.com/articles/printnews.aspx?storyid=25740

[orleans]

1. i've been saying these assholes are back again for the past few weeks

why doesn't congress figure out something to stop these fuckers from driving the price of gasoline up and up and up. this kind of crap should be illegal.

[Name removed]

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