[Marxism] Oil speculation--what's new?

Louis Proyect lnp3 at panix.com
Sun Jun 8 10:25:41 MDT 2008


The Herald (Glasgow), May 27, 2004

Speculators keep up pressure on oil price

A FRESH round of speculation helped drive up crude oil prices 
yesterday as prospects of rising output from the Opec cartel failed 
to deter petroleum bulls.

US crude prices jumped by around 11 cents to $ 41.25 a barrel on the 
New York Mercantile Exchange after a 58-cent drop on Tuesday. In 
London, North Sea Brent rose by 10 cents to $ 37.54 a barrel.

Heavy buying by highly speculative investment funds has driven oil 
prices up 27% this year on growing demand, supply security fears, and 
a tight US petrol situation ahead of the summer driving season that 
begins this weekend.

Oil analysts in London and New York said prices have failed to 
respond to Saudi Arabia's pledge to raise production sharply next 
month and pump at full capacity if necessary.

----

The Independent (London), October 9, 2000, Monday

OIL PREDICTED TO FALL SHARPLY TO $ 22

THE PRICE of oil is likely to fall sharply, boosting world economic 
growth, according to a report published this morning. The recent 
climb in prices to a 10-year high of $ 37.20 late last month was due 
to speculation, say economists at ING Barings. They predict a decline 
to $ 22 a barrel and below next year.

Last week saw a significant fall in prices as the United States began 
to release oil from its Strategic Petroleum Reserve. The benchmark 
Brent price was close to $ 30 on Friday.






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