Hello godoftrading,
Well, its refreshing to read a bit of sense after quite a while.
The speculators were there when oil was at USD147 per barrel, and are
there today even at USD47 per barrel. We must acknowledge and
appreciate their tanacity.
Given the present global economic slowdown it would only be fair to
expect that demand for crude oil would come down from earlier levels.
This in itself would cause a supply demand mismatch which has resulted
in the present scaling down of crude prices. It is expected that the
OPEC would scale down the production to bring back a ceratin balance
or let's say matching of the supply with demand. However, there would
be a lag effect; therefore the educated speculators are able to
profitably short the commodity.
You would observe similar circumstances in other commodities as well.
Sincerely,
Akash
http://www.narachinvestment.com
http://narachinvestment.blogspot.com
http://feedproxy.google.com/narachinvestment/uaXA
http://www.narachphilosophy.com
http://narachphilosophy.blogspot.com
http://www.narach.com
http://finance.narach.com
Why isn't the media & the loudmouths complaining about speculators betting
oil will go down?? I guess speculators are OK sometimes, eh?
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