• Financial speculation has led to acquisition of oil based on the assumption that scarcity will lead to greater prices.
• Institutional investors, protecting themselves of a weakening dollar, are buying not only oil but also gold, platinum, copper and other raw materials.
Just two of the factors cited by Gustavo Coronel in a column in Human Events in describing the perfect storm that has created ever incresing oil prices. I highlight these because they are my own bete noire. Mr. Coronel is himself doubly interesting. A petroleum geologist who lost his seat in the Venezuelan parliament thanks to Chavez, he would seem to know of what he writes. Particularly depressing is the stark realization that some of the largest producers are inimical to the United States. His prognosis is pretty grim.