Excerpt from: Financial Spread Betting Strategies
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| July 16, 2007 | | Looking at supply when placing spread bets on oil prices | One part of forming financial spread betting strategy when placing spread bets on oil prices is to look at demand. Oil prices often go up as supply becomes restricted. Right now, world instability is threatening oil supply, and pipeline shutdowns are affecting supply. Additionally, with the U.S. summer driving season well under way, and with demand expected to grow in developing nations like China and India, oil prices should be favoured to rise. Bloomberg reports on oil prices:
``The supply equation is quite constrained,'' said Francisco
Blanch, the head of global commodity research at Merrill Lynch &
Co. in London. ``Some maintenance in the North Sea and some
expected outages'' are propping up oil prices. | | |
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