Oil Spike 26 Feb 2009
Oil price had spiked overnight as demand for gasoline is on the rise and that crude inventories have not grown as fast as was thought. .
It may continue to go up depending on how serious is the situation of the oil reserve.
If the oil reserve continue to be lower then expected and demand suddenly spike up due to stock piling…then we shall see the next wave of oil price spike.
However, it’s very dangerous to assume that the economic can handle such a big spike and cause another demand destruction hence lowering the oil price sharply once more.
We are going into the unknown territory here where there are no precedent at all…come March 15 OPEC meeting and we shall see probably another round of strong oil movements.
However, do not bet too much of your life savings into it as it will change so fast that unless you have the means to trade every single minute in response to movement….you may get burned.
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