Speculation Not Driving Boom in Commodities

Surveyed economists name supply, demand as bigger factors

By Nick McMaster, Newser Staff

Posted May 8, 2008 4:29 PM CDT

(Newser) – A majority of economists think the upswing in food and energy prices is due to fundamental issues of supply and demand—and not driven by speculation, a Wall Street Journal survey finds; 51% pegged demand from China and India as the chief cause of the oil boom.

An additional 15% think supply issues are driving the oil boom. On food, 60% say that either supply problems or booming demand is driving prices up. By contrast, only 11% think either commodity's price rise is attributable to a speculative bubble.

A farm laborer plants rice seedlings at the experimental plots of the International Rice Research Institute, IRRI, at Los Banos, Laguna province 70 kilometers (43 miles) south of Manila, Philippines Saturday... (AP Photo/Bullit Marquez)

In this Sept. 12, 2007 file photo, corn farmer Keith Witt checks the freshly harvested corn as it is transferred to a holding bin in Warrenton, Mo. (AP Photo/Tom Gannam, file)

Oil pump jacks are seen at sunset in a corn field near Divernon, Ill., Wednesday, April 23, 2008. (AP Photo/Seth Perlman)

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Speculation Not Driving Boom in Commodities

Surveyed economists name supply, demand as bigger factors

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China • India • investors • economist • food prices • oil price • oil production • speculation

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Rising food prices threaten a more serious global crisis

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Out-of-control traders may be driving up oil, food costs, pols say

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Washington loses leverage as Beijing gains clout with Riyadh

OPEC May Boost Oil Output to Ease Prices

Cartel may meet early and backpedal on current policy

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Speculation Not Driving Boom in Commodities

Surveyed economists name supply, demand as bigger factors

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OTHER STORIES ON OUR RADAR

China • India • investors • economist • food prices • oil price • oil production • speculation

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Rice Is the New Oil

Rising food prices threaten a more serious global crisis

Our Economic Cure? Innovation

Innovation, and making it more efficient, can turn gray skies blue

As Prices Soar, Congress Aims at Speculators

Out-of-control traders may be driving up oil, food costs, pols say

Oil Prices Threaten US-Saudi Relations

Washington loses leverage as Beijing gains clout with Riyadh

OPEC May Boost Oil Output to Ease Prices

Cartel may meet early and backpedal on current policy

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Newser By Users

Community

Site Maps

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More News

What is Newser?