Professor of Finance Available to Discuss Speculators’ Role in Oil Pricing
Contact: Professor Robert Strong, 581-1986; George Manlove, 581-3756
U.S. Sen. Barack Obama last weekend proposed tightening up regulations controlling oil speculators as a way to begin reining in rising oil and gasoline prices. While the debate between Obama, the Democratic candidate from Illinois, and Republican presidential candidate Arizona Sen. John McCain intensifies over possible solutions to the crisis, University of Maine Finance Professor Robert Strong is available to offer cautionary perspectives.
While speculative investment in oil, even before it reaches out shores, may be exacerbating the problem, Strong, a nationally respected authority on the stock market, investment strategy and commodities trading, says blaming oil speculation for high prices is “an incomplete version of what’s going on,”
“In general, when we think of speculation, we think of a short-term activity where someone is hoping to turn a quick profit,” says Strong. “Whenever we buy something, there has to be a seller. You can’t buy something if there is no seller. In the energy markets right now, oil in particular, the press has reported a lot lately about speculative activity, but I think it’s unclear, still, as to the nature of what that activity actually is.”
For additional details and perspective on the role of speculators in oil pricing, Professor Strong can be reached at (207) 581-1986.