http://www.cnbc.com/id/42951408
Betting for the commodities market to rise this past week turned out to be not a great idea for Clive Capital. Oil dropped dramatically this past week and is sitting pretty at $98.90/barrel. After reaching $115, investors knew that a correction was in the works, but going from touching $115 to coming down to $98.90 in a week is a drop which many didn't expect. We're now closer to Goldman Sach's prediction of a $105 price for the year.
I see the prices going back up, by how much isn't something which I have been able to sit down and quantify. I don't see the oil prices going back up to $150 because the global economy is still in a recovery mode and will be unable to absorb high oil prices. This will hinder the ability for the economy to revive itself from the worst recession since the Great Depression.
More to come on a much more deeper level once exams are over this week.
- Saliq Khan
No comments:
Post a Comment