I just read a great article from a financial publication on why the price of oil is so volatile. The reason, according to this author, is investors are looking at oil as an investment tool, a hedge against other market situations, that will pad their portfolios against market fluctuations.
The problem here is that now, rather than seeing oil as a commodity, it is now a stock that will rise or fall according to investors thoughts and whims about the direction of the market it self. The supply or demand will have nothing to do with how the price rises or falls.
Interesting observation don't ya think? hmmmm
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