$107! Where is the price of Oil going?
Today the price of Oil hit US $107 per barrel of Oil. This is very troubling. With a supposed slowing down of the US economy where is demand coming from. According to a Bloomberg.com article it is from investors who see the returns from Oil trading beating the performance of the financial markets.
What are those returns? Quoting from bloomberg.com, “Oil in New York surged 77 percent over the past year as the S&P 500 and Dow averages dropped. China, the second-biggest oil- consuming country, increased crude-oil imports by 18 percent last month and halted overseas shipments to meet rising demand.”
With that sort of return cash rich investors, hedge fund managers are looking for the best returns. Something will have to give soon as Oil at US$150 a barrel could be a reality soon.
You can read the article here
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayL5dVxkxnes&refer=home