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Chinese news has made a mess of the markets and its all way overblown in my opinion ... as if with or without the Chinese central government those 3 billion more mouths to feed in Asia are going to do nothing about their bellies. China will have severe problems but do not think in our life time unless you're ten.
Well done Gogetum for keeping your nerve. While the day is not over yet so far things look good. I expected this mornings usual shorts getting unwound following yesterday's steep climb. I'm keeping my eye on Japan actually and was put a bit on edge following this morning's news. However of course yes the Fed will have an impact.
I hesitated on 540 went in at 557 feeling we have reached a bottom on this ... but then again I've had this feeling before and the market knew otherwise. Financially they look good, they pay good dividend its just the markets they operate happen to have some problems that are long overdue. I sense a u-turn by europe (Germany) on Russia due to this refuge invasion from Syria. Seems to have jolted europe back to its senses and I figure why keep making an enemy of someone who can do something about it? Otherwise GLA
I have given up using logic to understand a price anymore and I think the blame is on these new high frequency DMA software systems. Operators are using purely technical rules which to me explains why a share in an engineering firm dips and bobs so wildly by close to 200 points sometimes in a matter of weeks in tune with the price of oil. It would not make sense otherwise. An engineering firm will still have work no matter the price of oil. After all what upstream oil company is going to give it for free? I hold PFC as well and noticed PFC fluctuates in tune with WG even if Brent stays steady while WTI moves. Im barely going to look at them any more before next year.
seems to me you are right to say ouch if you're short. For those like me who invest short term we know the price of oil will not remain so low. If governments go bankrupt then irreparable chaos ensues. On the other hand when a company goes bankrupt another one steps in and buys were the old company left off. Wood group is just as happy providing service to either or
I'm not sure the 80s glut is a good comparison to what is happening today. 1. 80s India and China where not using as much oil for their own use as now. Thats distinct from actually using oil to power the worlds manufacturing base. This applies to all of Asia in general and Brazil. My thoughts are that world demand impacts demand for oil within a country but world demand has less impact on internal infrastructural oil requirements 2. The surplus in production is not that great in comparison nor the fall in demand which is puny compared to the 80s Anyone care to give their thoughts on this? http://www.forbes.com/sites/judeclemente/2015/08/07/indias-rise-to-3rd-place-in-oil-demand/
I see a future in shale oil deposits http://www.ft.com/intl/cms/s/0/868f3396-a319-11e4-9c06-00144feab7de.html#axzz3Tav5RKNs
Dont quite understand this harsh negativity from Questor. True things are not that rosy with increasing oil supplies but there is so much trouble threatening the ME that the markets can get spooked at the drop of a hat. Sudden we seem to have forgotten that these countries are run on sometimes flimsy tottering dictatorial systems with sizable pockets of fanatics waiting for their chance to hit back and make a grab for power. Barely 5 months ago we were worrying about spill overs and contagion with a ME all on fire now suddenly we're talking as if these oil supplies are guaranteed. somebody once said a week is a long time in politics and the price of oil has a lot to do with politics.