Exxon CEO Admits that Oil Should Be $60-70 Dollars a Barrel Based on Supply and Demand

Under probing questioning by Senator Cantwell, Exxon Mobil CEO Rex W. Tillerson admitted that oil should be $60-70 dollars a barrel based on supply and demand:

Some of the increase in price above this “supply and demand” level price is due to companies using futures contracts to lock in oil prices to ensure certainty (which is a valid business purpose).

Some of it is due to speculation. Indeed, using high frequency trading, it is relatively easy to manipulate the price of oil.

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