The people currently hedging their bets on oil? Airlines, trucking, etc.
And while it is nice to blame the eeevil speculators (they are related to the eeevil bankers), but the truth may be a bit more fundamental.
July 3 (Bloomberg) -- Crude oil rose above $145 a barrel to a record amid signs global demand for fuels, particularly from China, may strain supplies.People who don't understand what a futures contract is claim people are "speculating" in futures contracts. There is only one rub. When that contract expires you must deliver or accept a certain amount of product. It isn't an option - you have no option.
PetroChina Co. may import record volumes of petroleum products this year to meet demand needed for reconstruction after an earthquake, China National Petroleum Corp. said June 28, and to prepare for the Olympics.
So if those eeevil speculators were behind this, there would be oil sloshing around in the basements of investment firms.
People don't want to believe that China and India and increased demand are behind the price of oil, because then Congress can't help them. Not without increasing supply, and we can't do that. The environmentalists won't let us.