The people who tell you that commodity prices today are driven by “economic fundamentals” are the same ones who said that house prices in Britain were rising because of land shortages.
I think that there is a bubble in oil prices, and it has two components. There is this foundation in reality, and the interpretation and the bias in the market. Recently, this bias has expressed itself in more of a rise. So there is a froth super-imposed on the fundamental trend. Oil is increasing ... but the recent rise I think has a larger fundamental speculation and really misconception in the way the institutions have piled in on one side of the market buying these commodity indexes.
- George Soros, interview with CBC