La Croix Energy Capital | Petroleum Derivative Trading

“Think like a fundamentalist; trade like a chartist.”
Dennis Gartman. Rule #8 - Gartman’s Simple Rules of Trading

Saturday, April 10, 2010

Energy in the News

Solving the mystery of rising oil prices

Apr-5 (Financial Post) Here's a mystery for you. The price of oil has more than doubled over the past 15 months. It rose during the darkest days of the recession and Monday continued its seemingly inevitable climb to US$90 a barrel. But why?

Despite a recovering global economy, oil consumption is growing only slowly. Inventories are generous. The futures market is signalling that supply will be ample during the next few years.

So why should the price of oil be surging? The most likely explanation is that oil is no longer simply that stuff that fuels our cars and heats our homes. It's become a financial asset. And that has implications, not only for energy investors, but for the loonie as well.

Read more: http://www.financialpost.com/news-sectors/energy/story.html?id=2765810#ixzz0ki6i5UTL