George Soros: rocketing oil price is a bubble - Telegraph

George Soros: rocketing oil price is a bubble - Telegraph: George Soros says, "Rocketing oil price is a bubble."

By Edmund Conway, Economics Editor | Last Updated: 12:53am BST 27/05/2008

Speculators are largely responsible for driving crude prices to their peaks in recent weeks and the record oil price now looks like a bubble, George Soros has warned.

• There is a video on the The Telegraph site.

The billionaire investor's comments came only days after the oil price soared to a record high of $135 a barrel amid speculation that crude could soon be catapulted towards the $200 mark.

In an interview with The Daily Telegraph, Mr Soros said that although the weak dollar, ebbing Middle Eastern supply and record Chinese demand could explain some of the increase in energy prices, the crude oil market had been significantly affected by speculation."

What are the implications on biorefinery and biodiesel projects if oil price drops down to normal levels?