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First, some credentials: I am a licensed and registered commodities broker (Series 3 & series 30), and deal with speculative markets on a daily basis at the investment brokerage I work for.
Speculation does affect prices. Speculators create new highs, and new lows. However, speculation by itself is not able to maintain recent highs (lows) without there being a fundamental reason - supply/demand - backing such prices.
While speculation may have caused oil prices to reach its new highs, without a fundamental backing these highs can only be maintained by speculators for hours, a day or two tops. The simple fact that global supply of oil is 85 million barrels/day while demand is 87 million barrels/day is the fundamental fact for oil prices to maintain their highs.
Congress is after the CFTC (Commodities Futures Trade Commission) to do something about these speculators. This has happened in the past, and in the past Congress got its way. Case in point: in 1958 Congress...
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