Fascinating to watch the Oil price. Great piece in the Economist recently about the dynamics of the market. But I but you few, if any economists or traders were able to predict the current market.
http://ycharts.com/indicators/brent_cru ... spot_price
From a peak of $125 a barrel, brent hit <$81 today in an recovering economy.
Oil - WTI / Brent Crude
That's a drifter I'd feel uncomfortable riding...
Come to think of it... when using horse racing terms to refer to commodity markets should I use 'drift' or a 'steam'?
So price decrease in a commodity is similar to the chance of horses to win going down. A drift.
So the graphs are backwards because we normally graph odds which is the inverse of implied probability.
Come to think of it... when using horse racing terms to refer to commodity markets should I use 'drift' or a 'steam'?
So price decrease in a commodity is similar to the chance of horses to win going down. A drift.
So the graphs are backwards because we normally graph odds which is the inverse of implied probability.
Y, it's all back to front.
It's curious though because Oil usually follows the economic cycle, but the Oil producing nationals have been pushing out the barrels to try and choke off the shale gas revolution. It's a complex set of dynamics.
It's curious though because Oil usually follows the economic cycle, but the Oil producing nationals have been pushing out the barrels to try and choke off the shale gas revolution. It's a complex set of dynamics.
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Still gets me how quickly it seemingly goes up at the pumps when the oil price rises but comes down much slower and to a lesser extent.
Then you get the Chancellor moaning about the lack of speed of the falls at the pump but forgets to mention the proportion of it that is tax.
Then you get the Chancellor moaning about the lack of speed of the falls at the pump but forgets to mention the proportion of it that is tax.
http://www.bbc.co.uk/news/business-30223721
Oil touching $70 a barrel. Should give economies a bit of a kick, apart form the Oil producing ones!
Oil touching $70 a barrel. Should give economies a bit of a kick, apart form the Oil producing ones!
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I think some of the reasons being discussed are quite interesting. I am leaning towards the argument that they (Opec, i.e. Saudi's) are trying to put a lot of the Shale Gas producers in the States out of business.
It seems the most logical reason to me but I don't see how long term it will work as eventually when the price goes back up, be it soon or in a few years Shale will become viable again.
I can see a lot of people losing a lot of money in the states, carnage for many. Also it reduces the likelyhood of fracking coming to the UK soon I would think.
It should do the world economy a lot of good at a time when it is very much needed.
It seems the most logical reason to me but I don't see how long term it will work as eventually when the price goes back up, be it soon or in a few years Shale will become viable again.
I can see a lot of people losing a lot of money in the states, carnage for many. Also it reduces the likelyhood of fracking coming to the UK soon I would think.
It should do the world economy a lot of good at a time when it is very much needed.
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Someone tell the airlines about it.
I know they buy their fuel in advance but I doubt they will be giving a fuel deduction bonus in 6 months time.
I know they buy their fuel in advance but I doubt they will be giving a fuel deduction bonus in 6 months time.
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