Watch both video...some great stuff...and I was called crazy for suggesting this..

http://www.youtube.com/watch?v=iO6HUwlIS_Y

http://www.youtube.com/watch?v=f9dA8...eature=related

 

Interesting, but I'm not convinced it was 100% speculation driven...

This news story is very one sided. I'd like to hear the other side of the story before drawing conclusions.

 

Basically it's the hedging and the investments by the major banks from Wall Street (Goldman Sachs, Morgan Stanley etc...) in the futures market that's driving up the price. And Morgan Stanley alone owns enough storage terminals to hold at least 20 million barrels and operates as a wholesaler! In my view this practice should be banned.

The video seemed to dispel strong arguments for basic principles of supply/demand as a valid reason for the increase... and I didn't hear any claim that the oil price was 'relatively inelastic'!

What is most alarming from the interview is the revelation that Federal Regulators don't have access to the data pertaining to the investments as Federal Laws haven't been passed to give them the power to investigate!!!

Hardly surprising given what's happened over the past few years!