RE: [OPE] Reflections on the oil price controversy

From: GERALD LEVY (gerald_a_levy@msn.com)
Date: Thu Jul 24 2008 - 09:52:30 EDT


> Let's round off here. My initial point was on demand versus > speculation as a cause for the steep and big rise in oil prices.
 
 
Hi Anders:
 
OK, then let's get back to that point.  The point I would 
make is that the speculation is _on_ demand.  Current demand 
and anticipated future demand (and, hence, speculation) 
are both crucial for explaining changes in oil prices. 
The market has been exceptionally volatile recently 
and this can be explained, in large part, by increased
uncertainty over oil prices and this heightened uncertainty
is the perfect breeding ground for increased speculation.
 
In solidarity, Jerry


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