01 May, 2008

Oil Prices

Anatole Kaletsky has been hitting some good form recently, after what I at least regarded as a suspect phase a couple of years ago (economic analysis well past its sell-by date) and he has a good article in the Times today reminding us that wheat and several other commodities have come sharply off their peak prices and the same may well happen to oil in the near future.

Someone recently said to me that the oil prices were driven by speculators and I had to ask ‘but why aren’t the speculators selling rather than buying?’ Now we may be seeing the first signs that they are.

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