Oil 'bubble' adds to US recession risk - Soros

Speaking to the US Senate Commerce Committee, Soros says speculation mainly from commodity index funds has flooded the markets with money and pushed the oil price past its fundamental value. “I find commodity index buying eerily reminiscent of a similar craze for portfolio insurance, which led to the stock market crash of 1987,” he says. “In both cases, the institutions are piling in on one side of the market and they have sufficient weight to unbalance it." However, Soros notes real-world factors – such as the tight balance of supply and demand – also contributes heavily to the record p...