Market Review and Trends
Crude oil price is all rubbish!
By Level13  •  November 8, 2008
By: Level13 Around 4 months ago, crude oil price was at about USD140 per barrel. Fast forward to the last weekend, after a slew of bad news and poor earnings outlook hit the market, crude oil is only trading at about USD62 per barrel. After witnessing a drop of 55% in crude oil price, I have a few questions in my mind.
  1. Did the oil consumption in the world reduce by half over the previous 4 months?
  2. Did the world’s population replace half its energy needs by using alternative sources over the last 4 months?
  3. Did the oil producing countries extract 2 times more output in the past 4 months?
  4. Did someone or some country release its huge oil inventory in the market over the past 4 months?
The answer to the above 4 questions is a resounding ‘NO’. However, I will be glad if some kind soul can show me otherwise. The only logical and possible answer as to why oil prices has dropped dramatically is that most investors speculating in oil have exited the market. Read more...
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By Level13
Level13 is a 30 yr old guy who started investing about 4 years ago. He is a value investor who tries to buy a dollar note for eighty cents or less. Level13 Investor Creed "Do not believe in anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything merely on the authority of people who are above you. Do not believe in anything simply because it is found written in books. But after observation & analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it."
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