Opec Blames Speculators for over shoot..
Opec has said many times before that speculators take the price of oil beyond what the fundamentals dictate. They said that not long ago with oil over $100/barrel and said that there was no need for an increase in output because the market was well supplied and that it was just speculators that were driving the price. They were right. As they are right now that there is no reason now for prices to go lower from here other than rampant speculation not supported by fundamentals. Large one way bet hedge funds just keep all pushing in one direction pushing prices beyond what the fundamentals dictate. They do this in the oil market and other commodities, remember awhile back when food commodities were pushed higher for what is clear now, no reason other than large speculators? Yes we need speculators to help with price discovery but markets are not liquid enough to handle all the spec money on one way bets these days. They need to be reined in with position limits and reduced computer trading.