Analyst: Blame Fed’s liquidity flood for high oil/diesel

The good news is that skyrocketing oil prices, like slasher movies, are truly frightening only the first time you watch one. They get less scary with repetition. But being less scary doesn't change the basic facts. Markets need both hedgers and speculators to function properly. When they lose balance, they no longer function according to true supply and demand. --journalist Ed Wallace, writing in Bloomberg Businessweek Up, up, up... Excessive speculation is taken as a given ...

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Back to the past: $4 diesel returns

Well it's official, folks. The Energy Information Administration's weekly diesel report this week showed the national average with 3 cents of the $4 mark, reaching the highest point yet in the now near nine-month run-up in price we've seen since last August, by now oh-so eerily reminiscent of the 2007-08 run (an Overdrive headline in April 2008 read, "No April Fool's joke: $4 diesel"). This blow-up is ever more remarkable in what it's been revealing about the glacial ...

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Revisiting the oil bubble, as diesel continues up, up, up

In the July 2008 issue of Truckers News, I reported on huge and speculative, long-only investment positions in commodities markets then contributing to the dramatic rise in crude oil and other commodities prices. Oil topped off at an historic high of near $150 a barrel that month, and if you were around trucking then I don't need to tell you what that did to diesel prices. Well, it seems that investor speculation in commodities indices, driving ...

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