Sixty four percent of all contracts written for bulk oil purchases in the U.S. are made by companies that will never take delivery of even one drop of oil. They are made by speculators positioning themselves to make money off the scare over recent events involving Iran. Recently and American warship was targeted with gunfire in the Strait of Hormuz. Initial reports attributed the attack to Iran, but it turned out to have been made by smugglers — a correction that was buried in the media. Iran also announced it would stop selling oil to Britain and France, but those countries had already stopped buying oil from Iran anyway — a fact less reported than Iran’s announcement. Decades ago, financial speculators made up only about 30 percent of oil trading markets and refiners and end-users made up about 70 percent. Today those numbers are reversed; now only about 36 percent of all oil contracts are made by producers and end users, while increasing demand for oil in the U.S. is a myth. Demand for oil and gas in the U.S. is down while production of American oil has increased so much that the U.S. has actually started exporting oil to Europe, Asia and Latin America. In fact, now America’s major supplier of oil is Canada, not the middle east. So high gas prices now simply cannot be explained by any shortage or increase in demand, since neither exist. But they can be explained by speculators and their effect on the market, and we are all paying a heavy price for their activity.