Bloomberg joins chorus arguing that oil prices are just surging because of “speculation”:
The number of outstanding futures contracts, known as open interest, fell 8.1 per cent in a week to 1.36 million at the same time that prices rose 2.6 per cent, the data show. Falling open interest and rising prices are signs that traders are buying to exit so-called short positions that would profit if oil fell, and lose money as they rose.
Does it really matter what’s driving oil prices higher? For long-term policy, yes. For short-term trading and planning, meanwhile…”Market can stay irrational longer than you can stay solvent…”