Saying that “net speculative positions are four times as high
as in June 2008,” investment banker Goldman Sachs “issued a warning
that the price of oil has grown out of control due to excessive
speculation.” The world’s largest commodity trader, Goldman Sachs told
its clients that it believed speculators like itself had artificially
driven the price of oil at least $20 higher than supply and demand
dictate. They even admitted that their work to drive up prices has
harmed the American economic recovery, pointing to “nascent signs of oil demand destruction in the US.”
Ed Schultz, who’s been one of the few voices in the media sounding
the alarm about unregulated speculators, yesterday bashed Fox News for
selling the “drill baby drill” line in response to the surge in the oil
markets. Former commodities trader Dan Dicker explained to Schultz that
the CFTC is failing its mandate to control Wall Street:
Bottom line, it is not supply and demand.




Dicker warned that $5 gas is probably unavoidable as things stand. “There’s nothing really to stop it.”




http://thinkprogress.org/green/2011/04/13/174989/sachs-speculators-gas-prices/