I comment was made on the Hotcopper site a few weeks ago, it was an article posted by 3 major oil companies. They stated that the fall in oil price was purely based on sentiment.
The article further went on to explain that the media was down ramping the oil price, leading to world panic that a recession is near. Now as we would know from previous decades, when ever a recession occurs or is becoming evident to occur, the demand and supply of oil falls significantly along with commodities.
What really amazed me was that in conjunction to these reports, was that oil demand in the last 2months has remained at levels that were seen at last june levels, and oil supply has ONLY fallen 10% because of the OPEC cuts altogether. Now this was a real article, I cant remember where it was from either.
I have several friends in the oil and gas industry and they all agree with me that the bubble will burst and the only way is up.
Once we see oil going above $60, watch Gold, Platinum and Silver(especially this). It will be the largest rise in precious metals ever seen in your lifetime.
Now dont take this info to heart, as its only my opinion.
Patience people.
OEX Price at posting:
25.0¢ Sentiment: None Disclosure: Not Held
