Originally Posted by kap17
It wasn't long ago that quite a few members of this community were predicting $200 oil futures. What happened to all that talk?

http://www.msnbc.msn.com/id/12400801/

Quote
NEW YORK - Oil prices have tumbled below $70 a barrel after the government reported bigger-than-expected jumps in U.S. crude and gasoline inventories. Investors took the news as more evidence that an economic slowdown is curbing demand for energy.

This spike in oil was fueled by speculation and not by lack of supply. Maybe the next one will actually be supply driven.

Speculation definitely had an influence on oil prices. Never-the less, we cannot exclude the influence of demand upon prices. The quote that you provide basically assets that a build up of oil inventories due to a reduced demand is currently driving prices down. If/when we return to a world wide growth economy, the likelihood is that we will also return to much higher oil prices.... unless of course the massive infusion of abiotic oil does finally materialize.

"It's not a lie if you believe it." -- George Costanza
The whole problem with the world is that fools and fanatics are always so certain of themselves. --Bertrand Russel