Just how much oil prices are being driven by speculation became clearer yesterday as regulators revealed that Wall Street dealers, hedge funds, pension funds and other speculators hold 70 percent of the leading oil futures contracts traded in New York.
From Futures and Commodities News
Why? My take; The Fed, back in May, allowed Investment Banks (not so regulated, just sayin') to borrow money at the same rate as regulated banks--it's not called the discount rate for nothing.
Speculating on Oil is what they're doing with their new-found wealth. Proof? Morgan Stanley currently owns more oil than Exxon.
And look who predicted that Oil prices would go so high! Morgan Stanley!?
Hmmm. Seems familiar. Oil prices rose mysteriously high in the summer of 2006. Didn't prices go down by labor day?