There was a great and simply explanatory piece in Saturday’s Guardian. Read it here, but in brief:
- project demand has been scaled back because of economic worries in the US, EU and even China
- supply has been picking up as OPEC members beefed up production to capitalise on the high price
- Geo-political worries (like Nigerian unrest) have eased
- The dollar is rising again which helps: oil is priced in dollars so companies selling in other companies push the price higher to compensate for the slide in the currency’s value
- Hedge funds are getting out because of the above
Simple, no?
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Good information!
with a bit of luck the people playing in the oil market will decide that there are better returns to be made in the London residential property market… here’s hoping anyway.