Blame the speculators.. or is it currency movements. Why not just listen to the market?

If it is not the options traders causing higher oil prices then maybe OPEC are correct that the speculators are to blame, at least according to Abdullah al-Badri (the secretary-general of OPEC).

Speaking at the same conference, Tony Hayward (chief executive of BP) also said that the recent rise in oil prices was related to currency movements; are the currency traders to blame then?

So why is anyone to blame? My understanding is that prices go up because there are more buyers than sellers (economics 101). I just wonder why it isn't simply that the market thinks current prices are too low; somebody is clearly willing to take delivery of oil at these levels and so called speculators only buy because they believe prices are going up; oh and they also sell when they think prices are going down.

The only thing that we can be sure of is that nobody knows...isn't that why markets exist and why there is risk!


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