Rocketing oil price is a bubble May 28/08
Forexmentor.com Forex Trading Price Action
George Soros contends that speculators are the major culprits behind the current oil ‘bubble.’ Oil recently reached a record high of US$135 a barrel, with wide ‘speculation’ that US$200 was within reach.
In an interview in The Daily Telegraph, he asserts that some of the rise could be attributed to the weak U.S. dollar, ebbing Middle Eastern supply, and record Chinese demand, but pins a chunk of the blame on speculators. He calls the market a ‘bubble,’ given the parabolic shape of price.
His comments should not be taken lightly, as he is the world’s most prominent hedge fund investor. First it was stocks, then housing, and now oil. Tulips next?
This commentary brought to you by Peter R. Bain Wednesday, May 28/08, at www.forexmentor.com, where you will always find a brilliant strategy for trading the forex.
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