Rampant commodity speculation

The print and electronic media is highlighting the upward revision in prices of petroleum products by mentioning that the current level of prices has set a record. Some commentators are of the opinion that the prices may cross Rs200 per litre in the days to come, which implies that many people are bullish about them. When prices are going up, the people tend to think that they will increase further. International crude oil prices are hovering around $93 per barrel and commentators are of the opinion that they will touch $120, which also reflects the general mood of people. In the absence of international buffer stock, there could be wild swings in market prices of commodities. Any unforeseen event may create volatility in prices. The current standoff between Russia and Ukraine turns out to be an unforeseen event, which has played a pivotal role in jacking up the international crude oil prices.