Excerpt from: Financial Spread Betting Strategies
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| August 20, 2007 | | Hurricane worries, Fed rate cut boost oil prices | Crude oil prices are likely to even out sometime soon as hurricane worries and the Fed rate cut take effect in the markets. Financial spread betting strategy should consider that crude oil prices are likely to rise. MarketWatch offers this on crude oil prices:
"Crude is caught in the middle of a tug-of-war: weather
and diminishing supply levels versus meltdown in the financial markets
curbing demand," said Burton R. Schlichter, director of trading at New
World Trading, in emailed comments.
"The crude-oil market will continue to
trade in a choppy environment until investors have a peace of mind or
confidence," Schlichter said. "Crude should be supportive this morning
as the financial markets get a boost from the surprise rate cut by the
Fed."
But this morning as stocks appear to recover, and as the effects of some hurricanes become known, crude oil prices should take a more definite direction.
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