Obeyme is blaming ‘speculators’ for driving up the price in defiance of market supply/demand fundamentals. With every long contract, there is a counterparty shorting the commodity, no?
So if the market fundamentals truly don’t support the high prices, the bottom WILL drop out and some point and the ‘speculators’ are going to take it in the teeth.
OTOH if the premium is because of government tomfoolery (the 99% probability in my book) then the bottom has been raised significantly until such time as we get a government that is far less of a bunch of idealogues and respects the power of free markets.
That’s not likely with this bunch, which is a jail break from Harvard.
Speculative pressures can only be applied if the supply is already tight. The GOP's solution is to get out of the way of increasing the supply. The Dems LIKE high prices but don't want to take the political blame for such, hence blaming everyone but their own policies for the price spike.