Speculation is a part of market activity. Efficient markets punish speculators. Government policies encouraged and enabled the speculative bubble.
Energy markets seem to have more volatility than other markets. Energy is difficult to develop and there are few substitutes for certain kinds of energy. Poor investment decisions and government meddling can lead to volatile prices.
Where do you teach?
I suspect that the high for oil occurring simultaneously with Bush's cancellation of the presidential ban on off shore drilling was not a coincidence. Nobody wanted to hold high futures in a market moving down.
When did the price of oil start climbing toward its peak?
I believe it was when we elected a Democrat Congress. A Congress that made it quite clear that the largest consumer of oil in the world (the USA) would do absolutely nothing to increase its production or its reserves.
Gee, I wonder why the price started climbing...???
When did the price of oil peak, then start to drop?
I believe it was about when Bush rescinded the Executive Order against offshore drilling and the GOP minority in Congress held a "sit-in" to support legislation enabling offshore drilling and opening up ANWR.
Gee, I wonder why the price of oil started declining...???
Liberals do not understand markets. Which is why they try to control them...