The UK regulator (FSA- Financial Services Authority) has consistently maintained that the surge in oil prices to record levels close to $150 a barrel last year was due to fundamental supply and demand factors and not to speculative flows.It pains me to even listen to this be broken down into a dog and pony show.
Why would we listen to the FSA, the financial services watchdog--the watchdog that allowed the collapse in the first place with respect to the credit crunch and the economic meltdown spurred by Wall St. and London City-- to tell us that they don't feel that there is a problem with the speculation causing all of the fluctuations in the oil market?
What do you expect them to say? Say that they were not doing a good enough job?
Listen, the fear of the economic fundamentals collapsing from political and commercial intangibles, which spurred speculators to spot the price of oil on those broad assumptions.
Don't tell me either than speculation had nothing to do with it at all. Yes, I do agree, fundamentals played a role but a bit role. But, economic fundamentals did not and do not set the price. The speculators do in the futures market.
They price according to WHAT THEY FEEL is the right price. And, they further price on the premise of what production would be in the future and to how much people would be willing to pay.
Quit all of the God dammned lies.