Oil is a “bubble in the making”, but the crash is “not imminent”.
That’s what George Soros will say when he testifies at a hearing in front of US Senators today at 10 AM regarding energy market manipulation.
While Soros sees the fundamentals of supply and demand at work, he blames the new investments in futures markets through index funds for exacerbating prices rises. He does not believe commodity indices are a legitimate way to invest (from his draft text):
When the idea was first promoted, there was a rationale for it … But the field got crowded and that profit opportunity disappeared.