technicals hammered, page-9

Seems that Patersons were unaware about the U.S. energy situation. The fact that U.S. exploration groups using new technology had already discovered massive quantities of shale gas in shale formations across the length and breadth of the country. They have found massive quantities of the stuff, so much that it may amount to a 100-200 year supply. So much that the price had dropped from $12MCF to $4MCF. It was only a matter of time before this rubbed off on the oil price and other energy commodities such as uranium which will has also been falling.

They have found so much of the stuff that the WSJ has been reporting that it is going to have a profound affect on worldwide politics and economics as exploration utilizing this new technology goes international. Shale deposits are everywhere and the U.S. experience of finding massive reserves may be repeated in other places around the globe.

My sense is that part of the stength in the US$ and weakness in the A$ is due to this fact.