I don't believe supply is the issue.
I say we take all hedge fund managers out back and give them a real texas sized #$^ kickin'
It might not be a supply issue in reality, but with a much larger percentage of our oil consumption being satisfied by domestic product, the fund managers wouldn't be able to play with the prices so much (less fear/emotion = less influence on the market).
It's absolutely a suppy & demand issue. More to the point, oil is a world commodity with China one of the new players on the block.
Someone here suggested raising the margin on oil trades, from 10 to 15 0r 20%.
Sounds like a great idea to me.
However, it will outrage both Bush the Texas Oil Man and the Dems the Finance Industry slaves.