Crude drops to $124/bbl; George Soros blames futures mkt

Crude prices traded near a two-week low on signs that the Fed may stop cutting interest rates in a bid to bolster the dollar. In after hours access trading, crude is trading at USD 124.14 per barrel on the Nymex.

Billionaire investor George Soros is all set to blow the whistle on the oil bubble. Speaking to a congressional committee that's investigating the recent rise in oil prices, he said that only a part of the rise was a result of fundamental changes and market factors. He puts a larger part of the blame on investment institutions investing in the futures market through index funds.

"I find commodity Index buying eerily reminiscent of a similar craze for portfolio insurance, which led to the stock market crash of 1987. In both cases, the institutions are piling in on one side of the market and they have sufficient weight to unbalance it," Soros said.