Businessweek featured a number of stories about oil that were interesting - this on has some amazing investment numbers
http://www.businessweek.com/magazine...e+channel_news
In the past five years investment in index funds tied to commodities has grown from $13 billion to $260 billion. More than 630 energy hedge funds are placing bets, up from just 180 in 2004
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In most markets, skyrocketing prices would result in increased supply and decreased demand. That would cause prices to ease. But the oil market isn't working that way. Supply is essentially fixed in the short term because it takes years to find new fields and bring them online. Demand, meanwhile, is also essentially fixed, since there is no ready substitute for gasoline, diesel, and jet fuel. Flush with cash from investors of all stripes, traders observing these conditions have bid prices up and up.