Tuesday, 12 August 2008

Mind the Oil Spillage!

It wasn't long ago that everyone thought Oil would soon reach the near boundaries of 200 bucks per barrel. In fact, I know of several traders who were holding to their long CFD positions for exactly the same reason. But unfortunately for them the bubble burst before the price ever reached $150. I wonder if the Goldman Sachs's people managed to get out of their long positions in time before they really burnt their fingers seriously. Because as some of you may know Goldman were heavily long on the black stuff. In fact they were part of the reason if not all, for the Oil to have reached the price level that it did, as they upgraded the price on a number of occasions. What a joke ...!

What's been happening in the last week or so, has now been the reverse of before ... i.e. the fall in price cannot be stopped -- from $148 a couple of weeks ago, it is now down to $114 a barrel.

Obviously, the strength in Dollar has caused some of the fall, but who can argue with the famous saying of "Let The Trend Be Your Friend..."?!

No comments:


Related Posts Plugin for WordPress, Blogger...