Monday, December 9, 2013 Exit from comment view mode. Click to
hide this space  Speculators at the Pumps  WASHINTGTON, DC –
Until a few weeks ago, while oil prices were surging, debate
raged about the relative roles of economic fundamentals and
speculation in boosting oil prices. Although oil prices have now
fallen back from their peak, that debate must not be forgotten,
for it has profound policy implications that government
officials would be derelict to ignore.  Of course, if higher
prices are due to fundamentals, oil markets are working as they
should. But if they are due to speculation, then policymakers
speculators must act to rein in behavior that has imposed huge
and needless costs on the global economy. And, when the evidence
is confronted, it points to speculation as a culprit.  Whereas
many oil market participants have blamed speculation, most
economists defend how oil markets have performed and point to
economic fundamentals. One argument that economists use is that
higher prices are due to the we