Excerpt from: CFDs & Spread Bets
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| March 09, 2010 | | Spread betting and contracts for differences on oil prices | Spread bets and CFDs on commodities should consider that oil prices are heading lower today, dropping below $81 a barrel. Unexpectedly, oil supplies are on the rise, meaning that demand for oil is just not there. The global economy just hasn't recovered enough for demand.
Another issue is the fact the U.S. dollar strength on the spot forex market is pressuring oil. Gold prices are down, and oil usually moves with gold -- inversely to the U.S. dollar.
The fact that global equities are struggling, with Asian markets mixed and European markets down, as well as U.S. stock futures pointing lower, is not helping, either. Until things really pick up on a global economic level, oil prices will have a hard time sustaining any sort of rally.
| Topic Tags: CFDs, contracts for differences, gold prices, oil prices, spot forex market, spread bets, spread betting, U.S. dollar | |
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