[lbo-talk] Query: Speculation and oil prices

[Eric Draitser]

plus, i would also add (and im sure im simply stating the obvious that many
know) that international oil prices are pegged to the US Dollar.  If you
look at europe's gas prices for instance, they have not substantially
changed in the last few years while the prices here have risen
dramatically.  Much of the fluctuation in price has to do with a devalued
dollar that i would argue is purposely being devalued by the Fed in
collusion with central banks

On Tue, Apr 8, 2008 at 4:50 PM, Doug Henwood <dhenwood at panix.com> wrote:


>
> On Apr 8, 2008, at 3:39 PM, ken hanly wrote:
> >  Often it is stated in articles that a certain
> > amount of  the going oil price is the result of
> > speculation and estimates are made of how much per
> > barrel is caused by speculation. How on earth are
> > these estimates made?
>
> Build a supply-demand model, and then assume that the portion of the
> price that the model can't "explain" is the result of speculation (or
> war premium). I'm not saying that I agree with the results, but
> that's one way to do it.
>
> Doug
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