Humm...are we being conned again on OIL...?

Question

With global stock markets still weak compared with the robust gains of the past few years, many investors see better potential for gains in the oil market. Speculative buying has been cited as a major reason behind oil's more than doubling its price in a year.

Ref: Yahoo Finance Page

Answer 1

The impact on the environment plays no small part in the Oil refiners ability at converting Oil to Gas quickly and efficiently.

1) Contract haggling to buy Oil at cheapest possible price

2) Keeping within set EPA guidelines to avoid polluting air/ground/water during production ramp up in to satisfy demand for Gas

3) Contract haggling to sell Gas at highest possible price

As a Refiner, if you solve those problems, you're now as rich as Croesus.

Answer 2

According to the Economist, no. The simplest explanation is the best, as usual - soaring demand and sticky supply means rising prices.