Was I Wrong? Is Oil Trading Primarily a Speculative Market

How else to explain a 20% drop in prices since The Destruction of the Gulf of Mexico?

Oil fell below $70 Monday, reaching a low of $69.27 before rebounding slightly…The turnaround has been sudden — oil hit an 18-month high of $87.15 a barrel during trading on May 3.

The plunge in oil extended to the New York Stock Exchange, where shares of major energy companies were lower.

Is oil the derivatives of hard commodities: the place where liquidity is based on speculation, not fundamentals?