If everything is so great, why is oil dropping like gold?

Discussion in 'Economics' started by PlusMinus, Dec 9, 2009.

  1. #21     Dec 9, 2009
  2. Mercor

    Mercor

    #22     Dec 10, 2009
  3. Oil is dropping because there are more sellers than buyers...
    Next!
     
    #23     Dec 10, 2009
  4. pipracer

    pipracer

    this is oil....
     
    #24     Dec 10, 2009
  5. pipracer

    pipracer

    and this is gold...
     
    #25     Dec 10, 2009
  6. pipracer

    pipracer

    also...saying that gold is dropping...well...it`s a bit of an argument.

    Have a look at this:
     
    #26     Dec 10, 2009
  7. #27     Dec 10, 2009
  8. Now why would that be?
     
    #28     Dec 10, 2009
  9. That's not true - infact it's almost always wrong.

    If I have a barrel of oil and I decide to sell it for $10 under the last print, to a buyer of my single barrel, then the price of oil is down $10. It's not more buyers than sellers, it's sellers at a particular price point. Sellers that have more "expensive" oil are likely just on the sidelines sitting on their trade.(though i'd be hedging this long-oil shit in forex ) There isn't enough volume here to say there are more sellers than buyers. Markets are too complex now; you need to account for the "sellers that want to sell because they have a lot of exposure but are looking for exits/hedges" - the shadow market. In the past 20 years this is more responsible for market movement then supply/demand, though the latter still trumps the former on news.
     
    #29     Dec 10, 2009
  10. I get this email every month if you are interested.


    *******************************
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    Attached is the December 2009 issue of Rail Time Indicators, a monthly report from the Policy and Economics Department of the Association of American Railroads. Those wishing to receive the report automatically should send an e-mail with their name and business affiliation (if any) to Beth Eagney (beagney@aar.org) and/or me and ask to be put on the distribution list.



    Please note that in the rail traffic section we now include comparisons to 2007, since it is arguably more representative of typical rail traffic levels than the depressed levels of November 2008.



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    Dan Keen

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    #30     Dec 10, 2009