A simulcast
I have been getting no responses to my questioning of the rises in oil prices over the last year or so. I have been questioning the sentiments behind the price rises for almost the whole of the year: not just a bandwagon. Here are extracts from an article in the FT from 4th August. I think it is telling for two reasons:
- language used
- the reasoning and its acceptance
The language used in the article reflects my concerns in my previous Blog entry on this subject: that is, the journalist is worried about falling prices; oil prices plunging and falling prices amid concerns over the global economy and its performance. Where is the hysteria that accompanied the stratospheric rises that the world suffered from as speculation fed the rise in crude oil prices? Nowhere!
Probably more importantly comes the reasoning behind the price rises: take a look.
This is what they say in the article, included here verbatim:
- Other factors pushing down oil prices included higher supplies from Opec, which mainly reflected Saudi Arabia's decision to boost its oil production to the highest level in more than 25 years.
- Some traders also expressed doubts about the strength of Chinese consumption, saying it had been artificially boosted by stockpiling ahead of the Olympics.
- However, traders warned against calling the end of the oil rally, since prices have oscillated between $130 and $120 for the past 10 days without a clear trend emerging.
These speculators who have probably traded misery over food prices and billions of dollars over the last year as they raped the world are now hiding behind falling prices but no one is pointing the finger at them. Except me of course.
From Oil falls as fears for growth intensify
Duncan Williamson
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