Friday, May 6, 2011

Crude falls below $100 - Great news for India

Crude oil and most of the other commodities were on free fall on 5th May becasue of weak economic data from Europe. US crude specifically fell the hardest and was down more than $12 at one point of time before closing down $9.44 to settle at $98.26. This suggests the huge speculative position unwinding in the commodity.

Additional pressure came from the news that OPEC was considering raising formal output limits when it meets in June to convince oil markets it wants to bring prices down and reverse the impact of fuel inflation on economic growth.

Oil is definitely on a strong tragectory but this massive fall will keep the crude prices under check for considerable period of time. This augurs well for India which is struggling to keep inflation under check.

No comments:

Post a Comment

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...