| Supply and demand are what typically fuel oil prices . However, market fundamentals aren't the only factors at play. Speculators, like hedge funds and other big money investors, play a role in the price of oil as well. They can push it up past market fundamentals or, as they have recently, cause it to plunge -- the latest dip sent global oil benchmark Brent down 25% to around $85 per barrel, and U.S. oil benchmark WTI even lower.
Energy traders are betting that oil prices will keep falling. In a recent Bloomberg article, Citigroup's global head of energy strategy, Seth Kleinman, was quoted as saying that, "several big, smart commodity hedge funds said oil is going to zero." He went on to say, "they are being somewhat dramatic, but they were incredibly bearish."..............................................Full Article: Source
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