I have yet to see quantified proof that the increase in demand is commensurate with the increase in price.
The price of oil is speculative and does not obey all the rules of supply and demand.
63.75 -2.33
Yet, oil production is about what it was at the market open today.
Speculation does have some impact, but speculation alone simply could not cause all of the price increase we've had in the last three and a half years. It's mostly being driven by increased demand (especially in booming China), plain and simple, in the same way that the huge spike in the late '70 and early '80s was driven by the artificial supply cuts created by OPEC.
Yup. And speaking of speculation, I speculate that there are speculators active on this very thread!
Correct. There is no "skyrocketing demand", buried in most of these weekly articles is the fact that supplies are outstripping demand, year over year. Today, the stories about the huge drop in oil prices yesterday are mentioning that oil supplies grew by 11% compared to year ago totals, but demand FELL by 3%.