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Sunday, October 26, 2008

OIL TO DIVE FURTHER?



With the current global situation there is a possibility for the price of oil to dive much further towards the $60 a barrel pretty soon.I have doubts that it will pass that mark but it will be tested.We will see in the following weeks there will be a channel with the $85 to $60 mark

Trades will be mostly done within this range.Will be doubtful it can break the $60 mark this week.It will be well tested.

Even with OPEC planning to cut production, it may not be able to drive the price of oil up to the $85 per barrel mark as planned. One must remember that the biggest consumer of oil at peak was industrial China.Now that is has slowed down to a single digit growth rate of 8% there will be a lot less demand for oil.

Range for trade for this week of 27th October 2008: $60 - $85
Volitility : Moderate
Mid Term view : Downtrend
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