Speculators Now Dominate Oil Futures Market: Study
"Houston -- A new policy paper by Rice University's Baker Institute for Public Policy shows a clear increase in the size and influence of noncommercial traders, or 'speculators,' in the oil futures market since regulations were eased by the Commodities Futures Modernization Act of 2000. Speculators now constitute about 50 percent of those holding outstanding positions in the U.S. oil futures market, compared with only about 20 percent prior to 2002.
The report also finds that the correlation between oil and the dollar has strengthened significantly over the past several years."Source: SPX, 09/03/2009