Today oil price has become the hot topic of discussion for everybody. The price of oil is boiling at $127 plus... why is there so much spike in the prices?
The US economy is going nowhere, Europe is contracting... the world growth is faltering.. The US is still the biggest consumer of the gasoline,and the economy is headed towards a recession!!
The experts will tell you that India and China are adding to the consumption story!! but if we see the demand and supply, we can make out that this 40% rise is not sustainable..
Then what is the real storyline... It's easy folks.. The big commodity and hedge funds cannot make easy money after the subprime mess!!
They put all the money on oil and took them out of equity..Simple!! too much hot money is pushing up prices..
Newton's law will prevail.. I see the oil prices falling to $ 100 -105 levels in next quarters..
In the meantime you will hear all these stormy weather, 'supply disruption' stories leading to price hike as if this is the first time in history this is happening..!!
2 comments:
Saptarsi, your prediction came right after 3 months :)
Saptarsi, your predictions have come right after 3 months :)
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