D
DONALD J
Guest
Last year in 2007 oil was selling at $60.00 a barrel. By May of this year oil had reached 126.00 a barrel, over a 100 % increase. To look at a more recent period from December of last year to now oil prices have risen from 99$ a barrel to over 126.00. There have also been periods of dramatic drops. It went from $75.00 a barrel in summer of 2006 to less than $60.00 a few months later
If this were simply or primarily a problem of supply how do explain this extreme volatility?
The official story that it is really the fact that China and India have become competitors. But they were competitors in December 2007 when oil was $60.00 a barrel. Isn’t it more likely that speculation is at the root of this volatility
If this were simply or primarily a problem of supply how do explain this extreme volatility?
The official story that it is really the fact that China and India have become competitors. But they were competitors in December 2007 when oil was $60.00 a barrel. Isn’t it more likely that speculation is at the root of this volatility