Are speculators driving oil prices or is it supply and demand?

So many therories out there. what do you think? Are we in an oil ';bubble?';Are speculators driving oil prices or is it supply and demand?
I think for 15% supplyers drive it up, for 50% speclations, for 20% local distributors and for 10% transportation. Also some cost have risen (+5%).Are speculators driving oil prices or is it supply and demand?
It's supply and demand. The end of the cold war has meant that the Soviet model of how to run an economy ended in failure, so countries all over the world are now trying to grow their economies through market-driven export-led growth, the way Taiwan and Japan did. The main examples today are China and India. All those countries all wanting more factories all want more oil to fuel those factories. Now that the entire world is competing for the world's oil, it will never be cheap again.
Even with increasing demand the oil-producing countries (OPEC) have the capacity to increase production....this would lead to lower prices.





This is why President Bush went to Saudi Arabia this month, to ask them to increase production. But because of Dubya's policies, the Saudis only made a token increase, which has lowered prices marginally.





The Saudis are irritated with Bush鈥檚 confrontational style; the US upsetting their neighborhood, and not bothering to consult with them. US relations with OPEC members like Venezuela and Iran were never very good, but under Bush they have turned far worse.





For this reason OPEC members have no interest in increasing production. With the Saudis remaining quiet, every other producer is making hay, including US-haters like Mahmoud Ahmedinejad of Iran and Hugo Chavez of Venezuela.