This is another article siting the oil bubble and this demand figure is really interesting.
Hedge fund manager Michael Masters testified before Congress last week that while China’s demand for oil has increased by 920 million barrels in the past five years, demand for petroleum index futures has increased by 848 million barrels. This means the effect of speculators in just about as large at all the growth from China. This is amazing.
So according to Mr. Masters index futures have created almost as much demand for oil as all of China? Now that is a real eye opening figure I should think. I guess we can now blame oil index funds as a new cause of what Arjun Murti calles a "Superspike" in oil. I just want to see what event actually pops the bubble. I read that if oil goes below $120 then there will be a rush for the exits.
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