It is major speculation. I suspect we will see oil drop in the next few months now that that the CFTC is investigating its own maarkets and margin requirements. The full two articles from Financial Sense should be read to understand the full implications of what is happening here. Also this is effecting food prices as we speak and having major implications on several fronts.

A conservative calculation is that at least 60% of today’s $128 per barrel price of crude oil comes from unregulated futures speculation by hedge funds, banks and financial groups using the London ICE Futures and New York NYMEX futures exchanges and uncontrolled inter-bank or Over-The-Counter trading to avoid scrutiny. US margin rules of the government’s Commodity Futures Trading Commission (CFTC) allow speculators to buy a crude oil futures contract on the Nymex, by having to pay only 6% of the value of the contract. At today's price of $128 per barrel, that means a futures trader only has to put up about $8 for every barrel. He borrows the other $120. This extreme “leverage” of 16 to 1 helps drive prices to wildly unrealistic levels and offset bank losses in sub-prime and other disasters at the expense of the overall population.
http://www.financialsense.com/editorials/engdahl/2008/0521.html

Current Investigation by CFTC
Lawmakers approved a measure this month to strengthen CFTC oversight of electronic energy trading, and others have called for increasing margin requirements to reduce speculation in the markets.
Higher margin requirements could lead traders to switch to other markets, Lukken said today in an interview.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_nzZz4ep_2k&refer=home

Posted at June 9, 2008 11:18 PM in response to Is there an oil price bubble forming?

Great post

Posted at June 5, 2008 7:48 PM in response to I Never Thought I'd See The Day

Amen

Posted at June 4, 2008 11:51 PM in response to Breaking: Hillary To Suspend Campaign

We will be making sacrifices until we become much more efficient, less pollutive and more in tune with a planet we are driving into the abyss. We are on the brink of several revolutions which will change everything including the energy and green revolutions but the bridge to get there from here is perilous. Confronting the War, the National debt, Medicare, Social Security, Healthcare, the Environment...this will be an incredible challenge. Any Presidential not speaking in these terms is frankly blowing smoke up your a**

Posted at May 19, 2008 8:08 PM in response to Obama's Carter Speech?

"I mean, think about it, John McCain and with a young blond, and this was interesting: out of force of habit, Hillary is standing by him." --David Letterman

doh

Posted at May 19, 2008 7:54 PM in response to A pat buchanan joke

January 20, 2013, 12:00 noon Eastern time

Posted at May 19, 2008 7:22 PM in response to VOTE HERE: Hillary Concession Date Pool

Rec this up! Its great news for Hillary!
Now where the hell did I leave my crack pipe?

Posted at May 19, 2008 7:20 PM in response to If He's So Confident, Why The Desperate Behavior?

Another good link to contact the delegates here:

https://www.lobbydelegates.com/default.aspx

Posted at May 17, 2008 6:25 PM in response to Hillary begging supporters to contact DNC--the rest of us better respond

John,
Go 'Maverick' on the base. Bring back the crazy straight talkin grizzed old man we knew and loved. Being Bush's trained terrier puppy.....well let's just say being Bush's bitch isn't going to get you the independant vote come November.

Posted at May 17, 2008 6:20 PM in response to A couple more news cycles like that, and I'll stop donating to Obama.

I'm all for Amy Goodman. I'm just not sure how many people are tuning in to Tavis Smiley or surfing to democracy.now on a daily basis. I get 90% of my information via NPR, PBS, and several liberal sites and blogs including dnow but I am not a 'very sizeable' demographic.
You can question the veracity of the corporate media news. It is no doubt deplorably laughable. You can even not like KO for his heavy rhetoric or spittle across the bow of the camera.( I think I felt some spray last night)....
But in my estimation he captured a slice of the raging vehemence against the sitting 'regime' in his rant last night and threw light on Bush's utterly contemptible displays of compassion.
Cable television along with its viewers, I feel, are better for it.

Posted at May 15, 2008 9:05 PM in response to Keith Olbermann Eviscerates