Is this wrong of me?
I want to see the oil investors shrieking in agony as their bubble pops.
What's Really Driving the Price of Oil?
... There are plenty of answers. Some hold the crisis in the Middle East and constantly growing demand in China responsible. Others blame producing countries for keeping the oil spigot half-closed.
Still rising (click to enlarge).
But none of it's very convincing. "Supply and demand cannot explain the high prices," says Fadel Gheit of Oppenheimer & Co., a leading commodities analyst. Like many in his profession, Gheit believes financial investors are driving up prices. He's reminded of the Internet bubble around the turn of the millennium. According to Gheit, oil is also seeing "excessive speculation" at the moment.
OPEC arrives at the same conclusion. "The fundamentals are right," says OPEC President Mohammed al-Hamli. In fact, the cartel has expected excess supply on markets since early February -- a result of the American economic crisis.
... Enormous amounts of money are currently changing hands in the business of oil contracts. With the American real estate debacle infecting ever larger segments of the capital markets, from stocks to bonds, investors are seeking alternatives worldwide. Oil, with its supposedly straightforward market rules and ever-rising prices, seems to be a perfect tool for spreading risk and maximizing profit. But many investors will have a rude awakening when they realize that an investment in oil, though it may look different, is no less a gamble than other types of investments.
What's Really Driving the Price of Oil?
... There are plenty of answers. Some hold the crisis in the Middle East and constantly growing demand in China responsible. Others blame producing countries for keeping the oil spigot half-closed.
Still rising (click to enlarge).
But none of it's very convincing. "Supply and demand cannot explain the high prices," says Fadel Gheit of Oppenheimer & Co., a leading commodities analyst. Like many in his profession, Gheit believes financial investors are driving up prices. He's reminded of the Internet bubble around the turn of the millennium. According to Gheit, oil is also seeing "excessive speculation" at the moment.
OPEC arrives at the same conclusion. "The fundamentals are right," says OPEC President Mohammed al-Hamli. In fact, the cartel has expected excess supply on markets since early February -- a result of the American economic crisis.
... Enormous amounts of money are currently changing hands in the business of oil contracts. With the American real estate debacle infecting ever larger segments of the capital markets, from stocks to bonds, investors are seeking alternatives worldwide. Oil, with its supposedly straightforward market rules and ever-rising prices, seems to be a perfect tool for spreading risk and maximizing profit. But many investors will have a rude awakening when they realize that an investment in oil, though it may look different, is no less a gamble than other types of investments.