08 July 2009

Oil Down 63 Cents

Apologies for the lack of posts in the past two days on Blogger - there were technical difficulties!

But we're back! And today our focus is on the general financial mood and the fact that oil is back down - to a six-week low in fact! So what is going on - at the start of the year the mood was euphoric, and OPEC was forecasting highs of up to around $80 a barrel by the year's close. Is this still set to happen?

The answer is, it is hard to tell. On the one hand, investor confidence is down a little thanks to a number of factors, including the USA's poorer-than-expected unemployment figures and the rumours that there will be more fiscal stimulus. Investors are reacting cautiously, closing bets and moving back to the safe havens (the US dollar).

On the other hand, there are some who are saying that the oil price low is merely the correction of a too-early upward move.

Tricky times indeed for forex and futures traders!

No comments: