A Reuters poll of more than 40 major oil market players, including traders and analysts from the largest banks, trading houses and oil companies shows that most agree that excessive speculation has driven up oil prices. “…73 percent thought increased speculation had boosted prices above the level dictated by supply and demand, with only 17 percent saying it has had no impact.” Most respondents said it was difficult to estimate the added costs, but estimates [Read More...]
Excellent article on the problems with commodity indexes
April 9, 2010 by Leave a Comment
Interestingly, a strategist for Morningstar exchange traded funds has an excellent article spelling out all of the problems with commodity indexes and ETFs – how so much money has been invested in them that they have thrown off the functioning of commodity markets, driving up global energy and food prices, and how they do not move contrary to the stock market as academics and market experts have suggested.
This is yet more evidence of why [Read More...]
UNCTAD presentation on commodity speculation
April 7, 2010 by Leave a Comment
John R. Gagain Jr., Director of the Centre for Global Studies, FUNGLODE, recently gave a good presentation about commodity speculation, especially through the OTC (over-the-counter) dark markets, at UNCTAD’s conference on commodities and development. He spells out the problem well.
See his presentation here, and Q&A here.
The paper of his presentation is available here.
From the presentation: “If we do not prioritize fixing commodity markets first, and allow markets to function as markets, free [Read More...]