According to the analysts from Masters Capital Management, Oppenheimer & Co., Energy Security Analysis and PFC Energy Consultants, the high price of oil is being inflated by speculation, and don't make sense based on the market supply and demand. Without the speculation, oil should be around $60 per barrel right now.
In fact, one of the analysts said it wouldn't even take 30 days from passage of the law for gas and oil prices to drop, because fund managers would liquidate their positions in futures markets quickly.
Not everyone agrees with these analysts though. Instead, they say the high gas prices are because of simple supply and demand. Treasury Secretary Henry Paulson and Energy Secretary Samuel Bodman both dismiss the notion that speculators are having an impact on gas prices.
And Neal Ryan of Ryan Oil & Gas Partners said he does not think Congress should focus on speculators, but instead work on a U.S. energy policy that increases our domestic supply of oil and works on energy conservation.
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