What is happening in the oil and other commodity market now?
From recently Hedge, funds and other large speculators are cutting their net-long positions rapidly and Investors are selling of their commodities including oil.
How do they know weakness in the commodity in advance? What is the reason for sudden selling? Did you do research about top commodity investors and their move recently.
Thanks in advance.
Answers
190 points
HoughtonAndAtkeson answered one year ago …
Oil prices are decreasing, though it's due to expected lower future demand caused by a weakened consumer, not necessarily an increased supply.
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119 points
Noam answered one year ago …
With global demand increasing , almost all major oilfields in decline (Ghawar, Cantarell etc) and no major cheap oil discoveries in recent years, the direction for oil is clearly up.
If you think there is any demand destruction in the US, think again. Wherever you live, have you noticed more vacant parking spaces, less traffic jams etc?? I havn't. With petrol selling at about $9 a gallon in Europe, demand in the US will hardly change at $4 a gallon.
