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Thread: Oil prices fall as dollar weakens

  1. #1
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    Default Oil prices fall as dollar weakens

    On Monday oil prices fell as a result of a decrease in demand, while at the same time the dollar fell in value.

    http://news.yahoo.com/s/afp/20110516...energyoilprice

    The laws of supply and demand still work.

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    Banned Eric Stoner's Avatar
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    Default Re: Oil prices fall as dollar weakens

    1. The dollar has more or less stabilized ( at least temporarily ) and 2. oil has rebounded a bit since Monday.

    Nobody ever said that supply and demand was not the largest factor in commodity pricing. Just that it is not the ONLY factor.

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    Default Re: Oil prices fall as dollar weakens

    ^^^ other factors indeed ... check out the recent changes in margin requirements in the commodities futures markets !!! Margin calls generated by higher margin requirements forced many oil ( and silver and other commodity ) speculators to either sell out or pony up lots of additional cash to 'hold onto' what they already had. Most undoubtedly chose to sell ... resulting in a decline in 'apparent' demand thus a decline in price levels for those commodities.

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