$135 Oil? Hmm. The price of Oil is up a whopping 90% since Jan and for anyone who
followed Oil before it was such a headline grabber would realise this is pure bubble territory now.
Financial Times columnist John Authers pointed out that investment in indices based on commodity futures (all commodities, not just oil) has risen from $13bn five years ago to $260bn now. Pension funds, Hedge Funds and banks pitching to retail investors are all chasing the price up now and it has little to do with U.S. stockpiles, Chinese demand, nigerian unrest and Irans intentions.
Things such as Brazils recent huge Oil finds are ignored despite it being the first big return from deepwater exploration which has big implications for the near term.
Any change in sentiment now will see a huge rush to the exit in order to lock in profits and sell short and the fall may be quite brutal!
followed Oil before it was such a headline grabber would realise this is pure bubble territory now.
Financial Times columnist John Authers pointed out that investment in indices based on commodity futures (all commodities, not just oil) has risen from $13bn five years ago to $260bn now. Pension funds, Hedge Funds and banks pitching to retail investors are all chasing the price up now and it has little to do with U.S. stockpiles, Chinese demand, nigerian unrest and Irans intentions.
Things such as Brazils recent huge Oil finds are ignored despite it being the first big return from deepwater exploration which has big implications for the near term.
Any change in sentiment now will see a huge rush to the exit in order to lock in profits and sell short and the fall may be quite brutal!
