As the price of crude oil continues its relentless rise to $130 a barrel and above, the debate has intensified about whether this surge is the result of rising demand from China, India and the other new economic powerhouses adding to purchases from the West and Japan, or whether the hedge funds and other financial operators are behind it.

Figures showing US crude oil stocks down 6.5 per cent in a year to 5.4 million barrels suggest there are solid fundamental reasons for the upward price pressure. Additionally, financial market practitioners maintain that derivatives and futures positions are key short-term drivers and are likely to create significantly more price volatility as a long-term market feature.

This state of affairs has pushed aluminium futures prices to near record highs, on consideration of the heavy energy input in aluminium production. Power shortages in South Africa continue to threaten platinum production and hence support the current price of around $2,000 an ounce.