Is Oil Speculation Responsible for High Gas Prices?

As Americans watch their wallets empty as quickly as gas prices climb, we all search for answers. Some experts say the seemingly endless rise in gas prices is being driven largely by oil speculation, the practice of buying and trading oil futures -- in an attempt to predict the cost of oil at a later date. Should you blame speculation for your pain at the pump?


If there is something that will make just about everybody miserable, it is high fuel costs. The price at the pump is climbing as of late and shows no sign of slowing. Congress wants limits on oil speculation, to be able to suppress rampant increases in the cost of oil and therefore, gasoline. Congress out to limit oil speculation to curb gas prices. Currently, the CFTC, is waiting until later this year to issue new rules on crude oil future trading in order to collate sufficient data. Assuming that limiting crude oil speculation will keep prices lower, it may be a bleak summer for gas prices, as speculators are likely to take a parting shot in before they get reined in.


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Speculation on anything, be it real estate , food , oil and gas or electricity, is an act of theft. Speculators in market economics are nothing more than theives, who get together and concoct new and better ways to pick the pockets of poor old John Q. Public by jacking up prices. Get rid of the speculators and bring in state regulation. At least then the People, by way of government regulators, will be in control of how much they pay for commodities, and not a gang of dishonest, greedy brokers.


Do you need data to see the oil prices drop in the markets and rise at the pumps? I don't. Oil prices are a rip-off like any other well heeled American business. If every human were to reduce their own oil consumption, demand would not really change much as its slack would be taken up by military and up and coming countries, China comes to mind.
There is no doubt that speculation hurts any market, but in the same breath, I can't say it is the only thing to blame. Education is always key. Kudos to the gentleman who built his own EV car, we should all be so smart.


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