08.09.2015 - Paper and barrels, pushing and pulling oil prices: Petrodollars
When oil prices spike — and to a significantly lesser degree, when they collapse — it sets off the same debate almost every time. Did the price rise because of fundamentals? Or did the price rise because of investment flows and trading activities? At the heart of this debate is the idea that there is essentially no overlap between these two things. It would be almost amusing except for the fact that politics often injects itself into the debate, and of course no political leader wants to tell his or her constituents that they’re paying higher prices for gasoline because of fundamentals. So the evil actions of traders are blamed, some investigation is launched (which always concludes that it is fundamentals that led to the price rise) and the general public ends up cynical and poorly informed about the price of oil...............................................Full Article: Source
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