Friday, May 13, 2011
Under probing questioning by Senator Cantwell, Exxon Mobil CEO Rex W. Tillerson admitted that oil should be $60-70 dollars a barrel based on supply and demand:
Some of the increase in price above this "supply and demand" level price is due to companies using futures contracts to lock in oil prices to ensure certainty (which is a valid business purpose).
Some of it is due to speculation. Indeed, using high frequency trading, it is relatively easy to manipulate the price of oil.