$100 oil and the ‘S’ word

Is it growing demand and tight supply, or merely rampant speculation that has pushed crude to record highs?

NEW YORK (CNNMoney.com) — Greed is driving oil prices to $100 a barrel.

That’s a common feeling among the general public, which sees record profits for oil companies and investment banks while they shell out over $3 for a gallon of gas.


It’s also a common refrain from OPEC states. Having to defend themselves against charges their production quotas are responsible for the high prices, they point to near-average crude oil supplies and say speculative investment is what’s behind the frenzy.

But industry experts offer mixed opinions on speculative investment’s impact on oil prices. Some say it’s marginal, that strong demand and limited supply are the real reasons oil prices have risen five-fold since 2002, and say additional investors actually benefit the market by adding more liquidity.

CNN/Money