Commodity Trade Mantra

Posts Tagged ‘World Oil Demand’

Have Oil Prices & Markets Grown Numb To Supply Disruptions?

The idea that there is a major glut in oil supplies has been overstated. Surpluses in the past have been higher & oil prices did not collapse. Oil price discovery is basically made in the highly leveraged oil futures market & speculators exaggerate oil price movements on the upside as well as the downside. Just as fast prices fell because of them in the futures market, they could drive prices up.

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