Oil - Speculation continues
Oil prices have been hitting successive historical records on international markets this year. Since it broke the barrier of 100 dollars, in early 2008, won a force that no one have the courage to say when they might finish. Although the prices have been some time below the mythical barrier of the three digits, it won again impetus to move up and yesterday the crude reference of the United States played in nearly 110 US dollars per barrel, while Brent - "benchmark" for Europe - close to 106 US dollars. However, contrary to what has happened in recent years, now are not the fundamentals that are dictating rise in oil prices, is the growing investment by funds to cover risk and other large speculators. So, before play here, think that you'll play in a bubble market ready to burst. To have an idea how speculator are actually this market, in 2000 there were just over 400,000 of futures contracts for oil on the market in New York and currently there are around 1.4 million contracts. The more people want to buy, there are more products and higher prices. Now think in a panic situation, easily crude will drop $10 in one day or in a worst scenario $20. So, if you don't have experience in this market, I highly recommend you to avoid this pure speculation. Labels: Crude Oil
