Investment in new oil fields has not been robust; when the current overcapacity is sucked up, the gap between supply and consumption will narrow again, forcing prices up. On that thinking, $75 per barrel can look like a good bet. Juniors lead the way!
Crude oil futures have recovered 1.43 per cent on the Multi Commodity Exchange today on fresh purchasing by speculators. For full story, click here
The expiration of October trading certainly played a disproportionate role in the record one-day gain, as it exercised a huge pressure on short positions. The meteoric rise also illuminates how much the vacillation is due to speculative activity.
Data from global oil market indicate that it is unlikely that speculators have had a noticeable role on world oil prices. For full news, click here
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