Journal Article

Did speculation drive oil prices? futures market points to fundamentals


Abstract: Oil market speculation became an especially popular topic when the price of crude tripled over 18 months to a record high $145 per barrel in July 2008. Of particular interest to many is whether speculators drove oil prices beyond what fundamentals would have otherwise justified. We explore this issue over two Economic Letters. In this article, we look for evidence in the futures market that would signal speculation primarily drove prices. In our companion Economic Letter, we examine the physical market.

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic Letter

Publication Date: 2011

Volume: 6

Order Number: 10