The fact that oil just jumped to a new 2009 high shows that efforts to blame oil speculators for high prices may have little justification.
This is because the recent oil run- up came just as US and UK regulators said they would further tighten trading regulation to clamp down on speculators.
Markets clearly weren’t fazed by the news since oil rocketed upwards. Were these oil bulls all speculators, happy to see more regulation on the way? Doubtful.
If speculators were actually to blame for high oil prices, one would expect them to flee (to some degree) in the face of a regulatory clamp down.
Perhaps there are actually some fundamental reasons why people agree to buy oil at $74.
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