by Mark Thoma, University of Oregon (Department of Economics)

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Speculation Continued...

Posted on June 25, 2008

The debate over whether speculation is an important factor in oil markets continues. Here's a round up of today's debate (so far):Jim Hamilton:How big a contribution could oil speculation be making?I do believe that speculation has beenanother factor that contributed to recent high oil prices. However, a key element of the bubble story is that there needs to be a very limited response of quantity demanded to the price increases, which the most recent data persuade me is no longer the case. Some of the estimates I've been hearing of the size of the contribution speculation is currently making t...

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backwardation , commodities , crude , futures , spot price