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Alan Caruba writes: “Considering how much untapped oil is known to exist, not just in the United States, but worldwide, one would think that its current price was some kind of anomaly and it is. It is more the result of speculation than anything else.”

This “speculation” blame game is nonsense.

The price of oil has been going up for SIX YEARS.

Only in the short term - weeks at most - can speculation drive prices.

In the long term, price is dictated by the harsh reality of supply and demand.

The people who buy and sell oil contracts are full time professionals.

The result of EVERY trade they make is “zero sum.”

When one trader wins $1000, the trader on the other side of the contract loses $1000.

According to the “speculation” theory, journalists know why prices are going up, politicians know why prices are going up, news anchors know why prices are going up, and the man in the street knows why prices are going up.

But, thousands of professional oil traders - the guys who have been losing their own money by the billions for six years - they have NO CLUE why the price is going up!

So what's next?

Now that oil is at record prices will speculators force the price down?

Short sellers can make exactly the same amount of money on the way down that long buyers made on the way up.

Of course not.

The price of oil will come down when, and only when, there is more supply than demand.