Thursday, Dec 10, 2009

Demand for Oil is slipping

Bbc News: Oil price drops to two-month low

The oil price slips to a two month low. Does this indicate the begining of a second dip in demand as government stimulus packages are withdrawn?

Posted by mazza @ 10:58 PM (415 views) Add Comment

1 Comment

1. kruador said...

The oil futures price is largely financial, due to the amount of unregulated speculation by people who have no interest in either producing or ever taking delivery of the oil. When oil hit nearly $150 last year, it was in the middle of a recession, and a drop in demand that caused a glut of inventory.

Real supply and demand can have an effect, but largely in the minds of the traders.

I suggest reading Friday, December 11, 2009 12:07PM Report Comment

 

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