Chris Cook, Asia Times | September 19, 2008
Oil prices spiked to US$147 per barrel and then dropped to $90, demonstrating their dangerous volatility. ++ The US approach to oil price regulation is ineffective. ++ Global oil price benchmarks are now largely based on Black Sea crude oil (Brent), a relatively small reserve. ++ With increasing amounts of money invested in the oil market, speculation bubbles are more likely. ++ Oil price risks cannot remain concentrated, as Fannie Mae and Freddie Mac proved in housing risk. ++ A new approach is needed to prevent a total market meltdown.