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-- whether speculators are to blame for high oil prices.
A little debate we have Spencer patent founder and chief investment officer at Steele might investment and -- -- Was a managing director and senior analyst covering the oil and gas sector at Oppenheimer and company we respect these guys both they both -- oil.
But have a slightly different view on this Spencer first you are speculators.
To blame for high oil prices.
Absolutely not it's that's really -- an absolute political stunt from President Obama trying to blame high gasoline prices which.
It's okay to be frustrated that gasoline prices are four dollars a gallon but the reality as when when you look over to Europe.
Gasoline prices in Europe are eight dollars a gallon it's twice here.
And I can promise you that there's not twice as many speculators over and you're right because they prefer French -- and it's it's it's not the slide all Spencer says absolutely not -- say.
App so booked you've experienced I support the program on the first time -- this issue is absolute there -- had been in the business clarity of speculation have.
Absolutely taken over the market over the last five years and that's would continue to be that -- unless or until.
We have jail sentences put speculate if there's not figures -- on higher -- given that.
That's about it that's that's very strong so I don't think I -- -- -- -- that is to be jail sentence but bottle what do you say about the fact that that.
-- does seem to be relation between the price of dollar the weakness of the dollar and the price of oil it's.
That meant that in supply demand may have more to do -- speculators with a price.
Gained more than 50%.
Over bitty short periods of arm.
End of 2010 -- the beginning of last year.
Our prices -- coming down again and all of a sudden they are back to would be before.
Market's fundamentals in my view the must support oil prices which have -- get off oil prices.
Were 75 dollar question we have -- if world oil prices lower -- Under the OK let's accept your and you ask them are very good question that's a very good question -- all Spencer if you take that question.
Why should we have prices high when they should be around 7580 -- The I mean when you look back in August and September of last year we were pricing in -- European Armageddon we had no idea whether Spain was gonna implode Italy was gonna explode Greece's debt explode and that would be and it's still going to be very recessionary for the European economy which is a major consumer of crude oil so it's reasonable to expect that crude oil would come from eighty dollars towards a hundred where it is now which is just at about a 20% increase because -- more confident that the European economy while still not going to be great it's not going to totally -- so it's a reasonable thing that you could see crude oil prices appreciate 20%.
Because the economy absolutely has improved since that period of time that a lot of fighters on.
That's I didn't look at you disagree because give -- and decline in -- supply increase.
Inventory -- record levels in the US and around the world there's absolutely no reason for oil prices would be at our hybrid if -- off.
But the fact of the matter of speculation -- the -- mark.
Guys we would love to have you back because of the breaking news on on all the the new numbers that came out we had to cut this a little short but Spencer -- -- gave you two guys -- the best in the business even if you do disagree thanks very much -- -- if you're.