Is it speculation that drove the oil price above $90 last week, or is there something more fundamental happening..?

Well, as I have argued many times here before, I believe that the oil price will rise over the medium term due to fundamental factors. However, the major driver that has pushed WTI futures over $90 and gold to a 28-year high is much more simple that supply and demand. It is a basic human emotion. That emotion is fear…

Investors are scared. They have been moving away from assets that are now seen as risky after profligate and stupid lending in the US prompted a credit crunch. Investors, both private and institutional have therefore been seeking safety.  Read Full Story

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