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 WASHINGTON (AP) - As oil prices charge past $110 a barrel, analysts say government-run investment funds from oil-rich nations may be adding speculative heat to an already red-hot market.
By placing bets in futures markets, these sovereign-wealth funds are no different than hedge funds, pension funds and other institutional investors, with one exception: at the same time they profit by trading "paper" barrels, their governments' oil companies also reap huge sums pumping black gold for consumers worldwide.
While there is no public data proving that sovereign wealth funds invest in oil futures contracts, energy analysts say it's likely they're making financial wagers on oil — and other commodities — for the same reasons as other institutional investors: to take advantage of rising global demand and to cushion them from the falling dollar.
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