My new column is up at Forbes, and discusses the absurdity of blaming sustained higher oil and gas prices on speculators.
Is there a crime in the current oil prices? Yes, but it’s not one of speculation. Prices are a form of communication. Higher prices tell consumers to use less oil, and producers to go find more. The real crime today is that while the signal is flashing today to oil companies to go find more crude, the Obama administration has bent over backwards to make such efforts all but impossible. In fact, the Obama Administration desperately tried and failed to increase oil and gas prices via cap and trade last year. President Obama is not really against higher oil prices, he just wants them driven higher by the state, not by the markets.