Crude oil traded near $81 a barrel after rising yesterday as reports showed improvement in the U.S. job market and refineries operated at the highest level since October in the world’s biggest energy consumer.
Here’s another classic example price action generating market commentary. Better than expected this or that, drives the up or down the price of oil.
Investors making marginal decisions based on this type of analysis often find themselves in the wrong place at the wrong time. The "real" price of oil, following the lead of “real” (as opposed to the nominal) economy, underwent a secular change in 2008. These cycles, unlike short-term market commentary, tend to stay in place for years/decades. The current cycle favors gold over oil.
West Texas Intermediate Crude Oil to Gold Ratio (Oil/Gold):
Source: bloomberg.com
0 comments:
Post a Comment