When oil went from $20 to $40 then $60 after 2000, there were numerous explanations for the surge, especially given that there didn’t appear to be actual physical shortages of oil. Although many blamed speculators who are the “usual suspects,” especially for those who find the market moving to their detriment, others cited the security premium as the reason for higher prices.
[I remember a cartoon, I think from the New Yorker, where the TV reporter says, “The stock market went down today because more people wanted to sell than buy.” That is the best explanation of market moves I’ve heard.]
