Friday, April 4, 2008

Demand is down, supply is up, so why are oil prices rising?

The answer: Investment demand is increasing because oil is a hedge against dollar inflation:
the oil market is coming to resemble the gold market (which has also been soaring). ... most gold traders don't even ask the question of how much gold was mined last year or how much spare gold mining capacity there is.

No comments:

Post a Comment