It's not all speculation on oil
Oil prices have doubled in the last year because demand is growing and supplies are tight, according to the International Energy Agency. But a report out says there's little evidence that speculation is to blame. Amy Scott has more.
An offshore oil platform (Marcel Mochet/AFP/Getty Images)
More on Oil
TEXT OF STORY
Scott Jagow: Oil is above $142 a barrel. One reason for that is a new report out this morning about the future of oil. Here's Amy Scott.
Amy Scott: The International Energy Agency says oil prices have doubled in the last year because demand is growing and supplies are tight. In a report out today, the agency says there's little evidence that speculation is to blame.
Tom Kloza is chief analyst with the Oil Price Information Service. He says there's no question fundamentals have pushed prices up. But he likens the role of speculators to performance-enhancing drugs.
Tom Kloza: It's like hitting 70 home runs. Maybe fundamental performance and just a sharp eye for a pitch'll take you to 50. But maybe there's a little bit of performance enhancing that takes you that next 20 home runs.
U.S. lawmakers want the market to clean up. Members of Congress have proposed at least nine bills targeting speculators. A hedge fund manager told a House panel last week that curbing speculation could cut the price of oil in half within a matter of weeks.
In New York, I'm Amy Scott for Marketplace.
Comments
Comment | Refresh
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.