Sunday, May 24, 2009

Speculation Returning to Oil Supply & Demand?

I recently noticed parallels between last summer's gasoline moves and the current trend. The Algerian Energy Minister did likewise. He warned "recent price rises were being driven by speculation and a weak dollar rather than fundamentals."

Americans continue driving fewer miles, even at much lower gas prices than last year. What will the future hold? Boatloads of ka-ching? My guess is rising profits for big oil and Goldman Sachs, which specializes in oil speculation.

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