The first time that 2 of the Financial Services and hedge funds acknowledged that their profit-making needs in Oil futures is what is driving the oil futures up. But then, does the re-run of gold price increase indicate that the oil investors will lose steam?

Jagadish, Bromley, UK

didn't Bush do well? now he's managed to destroy 2 economies

Peter c, Devizes,

It feels and sounds like a new war is in the making, and people in the know are going long. For them to end in the money, Israel (and maybe U.S.A.) should attack Iran before their futures contracts expire. IMHO, things will get real interesting within a month.

Anatoly, Moscow, Russia

All of this can be laid at the feet of the Bush Administration who let the dollar fall in an effort to show an improvement in the "trade imbalance" The Fed for some reason is cozying up to them.

Nothing happens at that stratified level unless it is carefully planned.

mrw, Phila, usa

The lack of regulation of financial markets and banks is coming
home to roost, the last time things were this wild west ish
it lead to a depression, lets hope we are luckier this time,
but somehow I doubt if things can be fixed.
The lessons of the thirties are forgotten
now,

david, boston, usa

Leave the oil in the ground in 10 years it will be priceless.
Fact oil will run out and this is why the refinery capacity is being reduced to keep the flow back.
Also with the higher prices shale oil and the high soot oil is worth drilling for.
No oil company will find new fields which will be easy

Jay , Manchester , uk

With both a falling UK and USA stock market the only way to make money is to spread bet and manipulate the markets with OIl and food prices.
Typical market forces however long term we will have little to control.
Fuel savings are needed today.
USA needs to wake up 4 litre engines and 15 mpg is a no.

Jay , Manchester , uk

Of course, the fact that Hillary Clinton conceded at 9AM EST that morning had NOTHING to do with it. The fact that the smart money KNOWS that John McCain and 4 more years of endless imperialistic war in the Mideast and God forbid a nuclear attack on Iran WINS and will keep driving up oil prices.

Leslie Bell, Las Vegas, USA

The crude oil party is over. It took billions of years to form and we (largely the west) have raped this planet in only 100. Shame on us. We better find an alternative to crude oil fast because it is rapidly running out and yes, ladies & gents, it is going to keep getting more expensive.

Babis, London, UK

Pehaps the time has come to take over the oil fields, or are we to be held to ransom for the rest of our lives.

victor arram, westcliff,

Including expectations of future shortage or even uncertainty about supply in today's prices is elementary trading, not speculation. There is no shortage of oil and the market is working properly.

Of course people don't like high oil prices, but that's life.

Golodh, London, UK

The Mullahs of Iran v/s Isreal .... the conflict in the mideast continues.

Will world war 3 start in the middle east?

Vishal Patel, London, UK

The rise in OIL or other commodity prices, is nothing more than a reflection of how much the worlds central banks have been, and are now inflating their respective FIAT monetary systems.
As they inflate the supply of money, so they de-value the currency already in circulation, SO THINGS COST MORE.

Guru, Harrogate, UK

"the volatility in the oil markets is being caused by the banks."

No it hasn't. It's been caused by an unnessecary war in Iraq.

Until the world wakes up and accepts what a terrible crime the US and UK have committed, it's impossible to correct the current situation.

richard, gibralter,

Why isn't there a mention of Israel and Mofaz's afirmation of the necessity of attacking Iran in the near future as a direct cause for the spike in oil prices? Reuters has put this angle on the news in it's dispaches.

leo bassi, madrid, spain

The world wouldnt have any cheaper oil now then under the kickbacks during the Oil for Food scandle. If the US invaded for oil, then why is our oil so high? Either ive been cheated out of cheap oil or the No Blood for Oil slogan was wrong. Yes, blame the US for high oil now. US has doomed us all!

William, Atlanta, USA

I've made profit on the surge in oil prices. Frankly, with equities in all but the oil & mining sector tanking and bonds incapable of protecting my hard-earned savings from the ravages of inflation, oil's the only play in town.

Justin Thyme, Bangkok, Thailand

Exactly the same position here with gordon trying to save his political skin by pushing the governer of the boe about.
Head of the ecb rightly says that euopean intrest rates may have to rise.

bob, hants,

Who is behind the rise of oil and food price? Somebody must be getting filthy rich at the expenses of so many! Is there nothing that goverments can do, are we powerless in front of a greedy lot of investors? Who are these investors anyway? Can terrorist cells be part of them?

Maria, northampton, England uk

This is huge. Interest rates cannot possibly be cut there’s no slack left. A rock bottom dollar obviously means that the price of commodities are a premium. The Euro is strong with stable inflation throughout Europe and steady growth in the central block nations. How does the US respond.

gareth, london, uk

the volatility in the oil markets is being caused by the banks - only they have the financial clout to move the markets this way. physical traders seeking to trade and hedge are being caught out time and time again by huge movements in the paper price. lets not be fooled, its not supply and demand.

zugerman, zurich, switzerland

The Fed have eased off too quickly . It was good to see Bernanke admit that inflation was the main danger but now urgent action is needed - he could increase the Fed rate by atleast 0.5%. As for bird brain Bush, pumping paper money into the problem will fan the flames & turn the dollar into confetti

Steve Marchant, Broadhempston, UK

Tony, Brighton. Government interference in free markets is disasterous. The oil price is a reflection of a weakening dollar. Baseless accusations against traders shows a lack of understanding of the real problems which is governments, with too much debt, printing money with nothing to back it up.

Edward, London,

All this stems from the bad decision to invade Iraq. Monstrous amounts of money and lives were wasted there, and still are. Huge amounts of oil flow away to the US military daily. Iraq will be seen as a turning point at which the wolrd lost confidence in the US to manage its political affairs.

Colin, shrewsbury,

In an attempt to avoid a recession the Federal Reserve has lowered interest rates to such an extent that the falling dollar and consequential rise in oil prices is causing a worldwide inflation nightmare.

john, milton keynes,

Let's see, Wall Street begs for rate cuts and the Fed delivers. Investors abandon the US dollar in favour of commodities, pushing the price of oil to record levels. Now Wall Street panics because of the consequence of the rate cuts it was begging for.

Paul, Coventry,

The European and American governments should temporarily stop the oil profitiring traders.

Tony, Brighton, uk

The US is doomed. More economic stimulus packages, more talking up an impotent currency, foreclosures in the Alt-A and prime sectors gathering pace, $4 gasoline, accelerating corporate bond defaults and the looming implosion of the credit default swap market . . . Buy gold, buy silver . . .

Ray, London,

$118 to $139 in two days has nothing to do with conventional laws of supply and demand

SS, Edinburgh,