A Short Note on Manipulation, Speculation and Crude Oil Prices
4 Pages Posted: 4 May 2012
Date Written: May 2, 2012
Measures have recently been proposed to restrict trading in crude oil and gasoline. This proposal is based on the presumption that market speculators are artificially raising the prices of these products; in other words, that the market is being manipulated. In this short note I will review the difficulty in defining, identifying and proving manipulation, how speculation differs from manipulation, and briefly discuss recent empirical evidence on the role of speculators and market restrictions into commodities prices.
Keywords: Manipulation, Speculation, Oil Prices, Regulation
JEL Classification: G18, K20, K23
Suggested Citation: Suggested Citation