Posted by permission of Nicholas Benton, owner/editor of the Falls Church News Press
The Next Shoe to Drop
by Nicholas Benton
The past week's 20-point drop in the market price of oil is primarily attributable to forceful declarations by key Democrats in Congress, including Sen. Jim Webb of Virginia, that they'll investigate the role of dubious speculation in driving the price to its recent peak of $147 a barrel.
Hedge funds and others working on the margins of speculation do not like to operate in sunlight. Like cockroaches scurrying when uncovered beneath a household appliance, the speculators have begun ducking for cover.
If you are looking for a correlation to explain the sudden drop in oil, you can find it there.