Philip Tang... you said:

"Probably it has to do more with demand rather than speculation."

I suggest that 'demand' creates speculation.

There was a rather sick joke going round during one of Africa's famines.

One bloke of "un-named ethno/religious-well known for business acumen" background is travelling on a train in Biafra, suddenly a fly starts whizzing around the head of a starving Biafran also on the train,... he suddenly snatches it and..gulps it down.. soon another fly comes along.. and the bloke of 'un-named etc' beats the Biafran to it..and then, with dollar signs in his eyes says "Anyone want to buy a fly" ?

as I said..'demand' "creates" speculation:)

I guess as long as you're agreeing that higher demand has increased the price, I don't care what you call it, as long as it doesn't diminish the fact that..... higher demand increases the price!

What we appear to have here is what Peak Oil author James Howard Kunstler calls "cognitive dissonance".

http://en.wikipedia.org/wiki/Cognitive_dissonance

By all serious and reasonable geological accounts, western civilisation must start wean off the oil. But rather than accept this, we'll just call it "speculation" to try and divert attention from the ugly facts. "It's those speculators!" No, it's you when you fill up your own tank, when you fly somewhere, and when you.... eat.

Dear Friends, I have just updated my report on Peak Oil, many of the answers about supply and demand and oil prices are here: http://www.peakoilassociates.com/POAnalysis.html

I think speculators have very little impact on oil prices. It is purely a supply and demand story. To read more, check out:

http://www.beyondthemargin.net/2008/06/do-speculators-cause-oil-price.html

Bill Engdahl's showcase of the gargantuan hoax of Peak Oil is a timely reminder the charlatans and spin merchants - Rudd, Garret and Penny Wong are still the enemy from within our midst !

The 2020 blab-fest where a thousand of our presumed ' smartest-and-brightest ' were ensconced at taxpayer's largesse, for a week, was the epitome of self-promotion, egomania, and clap-trap propaganda this Nation has ever been forced to suffer, since Gough's schandenfreude dismissal by his holy annointed sycophantic GG, John the back-stabber, Kerr.

Smarting on the steps of Parliament, circa 1974, Gough petulantly branded him " cur's Kerr " to get even.

Most of the distinguished ' wannabe-mensa ' aspirants were hand picked from Labor's elite. The same decrepit dinosaurs hogging the limelight. Superannuated on Parliamentary pensions, life long Gold Passes, and Commonwealth chauffer driven limo's, they mingled with Ozziewood celebs, Cate Blanchett, Hugh Jakeman, Kathy Freeman etc for mug shots and photo shoots, on the lawns of Lake Burly Griffiths.Have you ever ??

The extravaganza only cost a paltry million bucks - small bickies for the newly reinvented boy wonder. Holy smokes. Considering he spent $ 15M to reconstruct Afghanistan for the Taliban, $ 5 M for the Myanmar debacle, $ 30 M for Toyota in Japan, to build an Eco-hybrid car ? All,off the cuff; without caucus or Cabinet approval ! Meantime, GMH's factory in SA, have sacked 1000 workers, pushing families on to dole queues and welfare. Ordinary Australians are battling escalating fuel, food bills, inflation, defaulting home loans, property repossession etc. Now, we are told narcissus Kevin has employed a personal butler, a fashion stylist, and a trainer ! For sheer vanity there is no precedent.

The latest Financial crisis, i.e sub prime rollout, is essentially the overwhelming greed of Banks, fiscal entrepreneurs,high rollers and co called financial wizards. The derivative-hedging market of make belief finally took a dive - taking tens of thousands of flotsam down the gurgler. Geoff Dixon of Qantas fame readily conceded, the aviation fuel fiasco isn't impacting greatly ( other airlines have since gone bust ) because as CEO,

What a pity that was cut off in mid-stride - it was getting quite entertaining! All it lacked was an accusation that Rudd's government are puppets controlled by the Illuminati :)