Say my NC State colleagues Srini Krishnamurthy and Richard Warr in an N&O op-ed today. Srini and Richard point out that the recent run-up in oil prices can easily be explained by rising global demand (blame China) and falling supply (blame Libya). Also, futures markets themselves are subject to the same market forces -- for every speculator who wants to buy an option that pays off when oil prices rise, there has to be a seller who thinks otherwise.
By the way, I just bought gas this morning and the price has fallen in Cary to 3.71 per gallon. Do speculators get credit for falling prices too?
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Beanie Babies
6 years ago
