Fundamentals drive oil interest despite bubble calls

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Investor cash is still flowing into oil-linked structured products, as talk of price falls fail to dent confidence in the market. Record highs have led to concerns that prices per barrel are being driven unnaturally high by speculation, creating unsustainable bubble-like valuations. Brent crude hit a record $113.97 a barrel at the end of April, and light sweet crude oil pushed just ahead at $115.21 a barrel, also a record.

However, while analysts maintain that financial flows are a structural fac