Tuesday, July 07, 2009

Oil Speculation

At last, the government is thinking sensibly about limiting oil speculation. One wonders why every commodity has to be speculated upon. In fact, some products, oil being one of them, should have price regulations. This does not mean that oil becomes dirt cheap. In fact, the ability of oil-producing nations to limit petroleum production means that prices will likely remain fairly stable, but at a high level. The problem with speculators is that they overreact to the tiniest change in the market and get on bull and bear runs that leave the economy reeling. Personal profit does not have to come from every concievable product. Stable oil prices decided in a more rational manner helps everyone. Except for speculators.