Quote:
Originally Posted by TheBroker  Speculation could however be a factor but not the only factor. The subsidies that are doled out in China, India, Indonesia, etc contribute to keeping the demand high and such traders/companies will definitely cash in on the same. As long as big consumers like India and China don't feel the pinch, price will not fall!! |
I never said speculation is only reason, it is however one of the reasons, if you had read the previous post. Do you think in last two days price fall in Crude is because of excessive drilling or sudden supply from Oil exporting nations. I guess no, it was long overdue, that crude will fall, when there is a slowdown in the US.
The crude price will fall even further, given the expiry is approaching, speculation has a huge role to play, if not the single factor. Ofcourse macro-economic factors are the major ones, that drive any commodity price. US is the largest consumer of Crude (US consumes around 25% of every barrel of Oil), China is not far behind, but it stands a loose statement, when you say, the day India and China feel the heat, the prices will fall.
Cheers,
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