If you trade the black gold, then we don’t have to tell you that crude oil did not have a good week. Do you think this is because of a decline in demand, or has the drama on Capitol Hill regarding subsidy removal from big oil companies impacted the market?
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once the drama is over price of oil should come down, unless there is another war going in the middle east.
Drama has a temporary, short term effect.
It is hard to say what actually influences the market, but uso is up and down wildly every day so it seems. It is very common to see a two or three dollar spread during a "normal" trading session. This is great for me as I buy in the dips and sell later that day or the next for a sweet profit. Siver (slv) is the same way. I have made thousands in silver recently. Glad I unloaded most of it before the last big correction, but I am still long on silver. Its going back up, you know.
LOL, Drama is news and news is a aftermath explanation a reason why the market did what it did. TA is a crystal ball compaired to the news or Drama. Forget Drama and forget news. Trade with TA.
Speculation in oil futures is the reason for high prices, and it has been shown that this speculation can be ended if the Obama people would simply lower the restrictions on domestic oil production. Of Course, such action would help our economic recovery, but the past shows that Obama's current goal is the destruction of our current economic structure, not its recovery
The game of the drama would never be seen as if it's the end of the world, rather things will going epuillibirium since the government will take care of fair and tollerable retirement pollicy become feasible.
Regards.
"Record Profits" in and of itself is not an indicator of "GREED". Rather look at the profit margin. Traditionally, oil companies have made between 5 to 10% profit margin, as compared to the business average of 15 - 25%. The goverment propaganda is to villianize the oil companies to deflect scrutiny of energy policy. The market is what controls prices IF, left alone.
Drama? How about the effect of self destruction!
The price of oil affects every man,woman,child,dog,cat,horse,pig,cow,chicken,turkey,salmon,cod,crab,squid,vegetable and the cost of everything they require to live.
We've gone down a road that has made us so dependent on oil that it should be deemed an essential commodity.
If our cash grabbing governments don't wake up to the perils of high oil and gas costs - then they/we are doomed to repeat recession/depression year over year.
Investors driving up the price of oil is so inflationary that it will ultimately sink any business that must extract, retrieve, manufacture or transport a product and eventually crash every other market.
I COULD GO ON AND ON ABOUT THE IMMORAL ACTIVITIES OF ACQUIRING THE BLACK GOLD FROM FOREIGN COUNTIES AND THE DESTRUCTION OF OUR OCEANS.
OUR GOVERNMENTS ARE NOT SOLELY TO BLAME.
EVERY INDIVIDUAL THAT TRADES OIL AS A MARKET COMMODITY DRIVES UP THE PRICE.
If we all got out of our oil positions, the mass sell off would drop the price of oil so low that our troops would all come home. (there would be no profit in them staying in the middle east). Then the Dow Jones Transportation average would see a sharp incline and we would be back to strong economic growth as a whole. and then MAYBE... we would start thinking about alternative energy to move our goods and services and extract the natural resouces that make our lives so comfortable. HOWS THAT FOR DRAMA?
Dougie;says Oil is a necessary fullo for the modern society! I cant see any change much in the next3 Months.Maybe the demand may increase. pricewise,I am still going to keep my stable of oil producers. I like oil.Expect to increase my investment in oil. Allberta tar sands is good for Canada.I like the results of our recent Canadian Election results.For the first time in my memory ,we now have Prime Minster Who is not a Lawyer or an Industrialist Just common Clever man. Likewise the oposition , I would say a Govt of the common man. Just watch Uws.
All of the above arguments are influencing oil markets, especially all kind of market manipulation multiplied by many news manipulations, public relation reports and so on. I also point at the war in Libya with which oil break out through 100$ level.
self serving president and congress are so busy feeding at the public hog trough, that they disregard the great opportunity in natural gas. the country has no sence of direction or statemanship.
Cheap dollar, less drilling, weather conditionn, high government deficit, and the idiot president we have with his insane policies are making the gas prices go up. All big businesses are going to make their profits to stay in business.
In countries all over the world, oil prices are always influenced by the government in a form of subsidy. Because the hurdle to enter the oil business is extremely high, without incentives oil companies simply cut production or exploration to maintain profit margin. Try run your car with water which is even more expensive than oil in some area. Try run your car with eletricity, what is used to produce the juice, nuclear power? think you live in Japan. In our life time oil is still the cheapest route.
About everything hinges on the dollar.
Since commodities trade in dollars they tend to trade in opposite direction to the dollar.
Falling dollar creates pressure on commodities producers to demand more dollars since their domestic costs in their currencies rise as the dollar falls. Also, a falling dollar results in more dollars to book back home as revenues and profits for the DJIA multinationals, which then lead the rest of the stock market. Traders play these elementary facts to the hilt until they eventually face a technically impossible situation of overbought vs. oversold situations.
So, it´ll eventually come down to an inevitable reversal.
The decline of the dollars has been fed by an especially unholy and hopeless alliance of trading bulls and doomsayers that predict everything from a Mad Max scenario to the veritable end of world. Once the world fails to end I believe that the thousands of tons of freeze fried foods stored will result in collapse of dog food prices. So, short pet food producers.
Drama affects sentiment sentiment affects the market directly.Washington should stop the drama and let Mr. Market do his job they have already done enough damage with their micro management tampering off the free markets
Does Drama Affect the Markets?
It affects all human endeavors.
All one big casino controlled and manipulated by the big banksters and the criminal politicians. Greed and power gluttony govern. The control the swings and roundabouts.
Now; a real short squeeze in the dollar could send commodities down dozens of %, kill any price inflation and then some and allow the FED to maintain its zero % policy and even facilitate QE3. Also, the dollar carry trade will have to be wound down sooner or later..
A rising dollar is also imperative to help Japan. The Yen must be kept down at all costs to prop up Japanese production and exports. Consider it emergency economic aid. Their problems are gigantic and ongoing and growing.
Big oil is not only stuffing itself with cake in the form of record profits, and at the same time has consumers and bought politicians working overtime to bake a never ending stream of new cake for b.o. in the form of ever increasing prices for gasoline, plastics and all other petroleum based products on one hand and free tax handouts, subsidies and depletion allowances on the other. When is too much enough?