Originally Posted by miro
It is impossible for the Chinese to drive up oil prices if the supply is increased to match demand. Not even the Chinese have that much money.
The prices were not driven by demand - but a over-confident delusion of demand.
That's what the markets do. This means that you can shift the market headline pricing significantly based on a small amount of money or a minor news item.
The Chinese in part set it off because for their own reasons they decided to increase their reserves. So a combination of a small but tanglibe % increase in forward demand combines with sepculators pouring in ended up with a price spike.