Wailing Into The Void

For those of us who believe in the wisdom of free markets, this might be a little disturbing:

Investors rushed to buy oil futures contracts as far forward as December 2016, pushing their prices as high as $139.50 a barrel, up more than $9.50 on the day. The spot price hit a record $129.60 a barrel.

Veteran traders said they had never seen such a jump and said investors were increasingly betting on the idea that production would soonpeak because of geopolitical and geological constraints.

This entry was posted on Wednesday, May 21st, 2008 at 11:30 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.