Speculation explains more about oil prices than anything else

http://www.mcclatchydc.com/2011/05/13/114190/speculation-explains-more-about.html

WASHINGTON — Feel like you're being robbed every time you fill the gas tank? Not sure who to blame? Try Wall Street.

That's not the conventional explanation, but it's the one the facts point to. Usually analysts say today's high prices stem simply from "supply and demand." They mean demand for oil and gas is rising and supplies aren't keeping up, so people bid up their price. But global and U.S. supplies are plentiful and demand is stable, so that's not it.

Then the analysts say it's because the market's afraid Middle East turmoil will interrupt oil supplies, so nervous buyers are bidding up prices to ensure they lock in a contract for oil now, just in case it's scarce later. There's probably some truth to that, but after five months of turmoil, there's been no significant impact on Middle East oil supplies, even as prices have see-sawed, so that's not credible either.

Here's what's credible: Some 70 percent of contracts for future oil delivery are now bought by financial speculators — largely big investment banks and hedge funds — who never take control of the oil. They just flip the contract for a quick profit.

Read more: http://www.mcclatchydc.com/2011/05/13/114190/speculation-explains-more-about.html#ixzz1MGWrLr27

factor in the price of oil even as it then approached $146 per barrel: surely Hank was neither ignorant, dissembling, nor just blowing smoke up our asses. :patriot:

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we could try Wall Street.:shrug:

Do you think in today's global economy with markets all around the world, they can't operate from anywhere?

Do you have a link that would explain how stopping the speculators on Wall Street would not work, unless we can stop all of the other 256 other countries they're in?

Oil goes to the highest bidder. The bidders can operate from anywhere. That's just a fact of life (or economics).

doesn't have a clue about what she is talking about?

Her quote from the article:
""American consumers are getting gouged at the pump while speculation on Wall Street runs rampant. Today the CFTC must ... crack down on excessive speculation and provide relief to American consumers,"

If what you say is true, that is probably why these Senators talk about doing something about speculators but all they are doing is blowing smoke.

The answer to your question is: All those places.

How will that get done?

That doesn't mean it shouldn't though.