Posted May. 27, 2008 08:53,
Billionaire investor George Soros yesterday blamed speculators as largely responsible for driving crude oil prices to record highs.
In an interview with the Daily Telegraph of the United Kingdom, Soros said the weak dollar, ebbing Middle Eastern supply and record Chinese demand can partially explain hikes in energy prices, but that the crude oil market has been significantly affected by speculation.
"Speculation...is increasingly affecting the price, he said. The price has this parabolic shape which is characteristic of bubbles."
His comments go against the opinions of other experts who deny that speculators have significantly fueled oil inflation.
Soros also warned that the oil bubble will not burst until the United States and Britain go into recession and oil consumption decreases.