SILVERHARP2 wrote:it should decrease global tensions in terms of potential resource wars etc.
Is that true? the price is only one half of the business. The amont of money available is the other. If both price and money drop you are still left with the same competition for resources. Only if (when) factories close, reducing real demand, will resource competition ease.
SILVERHARP2 wrote:it should decrease global tensions in terms of potential resource wars etc.
Is that true? the price is only one half of the business. The amont of money available is the other. If both price and money drop you are still left with the same competition for resources. Only if (when) factories close, reducing real demand, will resource competition ease.
it is different though, rising prices scare people, being not able to afford to consume or more likely depressed economic activity reducing demand will take some of the political heat out of the situation.
I would't be surprised if a lot of the drop is due to winding down of leveraged positions - Lehman assets (CDS etc.) are currently being wound down which is feeding volatility at present.
I experience pleasure and pains, and pursue goals in service of them, so I cannot reasonably deny the right of other sentient agents to do the same - Steven Pinker
Right now, WTI Nov 08 futures are trading at $76.40
The years just fly by
Wow! Around 1700 posts, 70000 views and 113 pages of discussion just to move down by $2.5... makes you wonder if we should all be spending less time online!
"If we don't change our direction, we are likely to wind up where we are headed" (Chinese Proverb)
Some technical work by an excellent analyst I am following at the moment is suggesting lower prices for the rest of the year unless we get a real capitulation in the market, then there might be a rally.
