Speculation and Oil Price Formation
7 Pages Posted: 28 Mar 2012 Last revised: 4 May 2012
Date Written: February 29, 2012
Can the boom in oil prices be explained in terms of tightened market fundamentals? Or has the oil market been distorted by the entry of financial players? This article will try to shed light on the marked increase in volatility during the latest 2008-2009 price cycle and on the role of speculators in the oil market.
Keywords: Oil Market, Speculation
JEL Classification: Q4, Q48
Suggested Citation: Suggested Citation