London's Speculative Markets Push Oil To $100/barrel

http://bit.ly/7XwAG

Brent crude touched $99 / barrel at the ICE Exchange of London before retreating to lower levels during the week. As per a Reuters  report  it coaxed the US crude prices to as high as $92 per barrel despite the fact that the stocks at Cushing the US entry point of  US crude was at an all time high. Ever since BP dis-invested and got out of the storage business at Cushing in August 2010  the US stocks have been up and that has had a salutary effect on crude prices within the States and globally.

 Brent oil  which constitutes less than 15% of the global volume  accounts for over 60% of the global trade at the futures markets of London. Since the British Government earns on the turnover through an old nineteenth century  legislation on the market turnover it is reluctant to stop speculative round trip trading that churns every barrel of  Brent oil  20 to30 times in virtual deals and raises the price of the Brent  crude oil futures at the commodity exchange.