[Fot] Oil - Since Triumphs Drip, Its Worth A Minute To Read

[LOddTR at aol.com]

An article with similar comments was in USA Today this morning.
 
 
In a message dated 6/4/2008 11:50:05 A.M. Eastern Daylight Time,  
Group44TR7 at aol.com writes:

Amici

One of my colleagues and  friends is Jim William of WTRG Economics 
(_www.wtrg.com_  (http://www.wtrg.com) ). Jim is one of this countries 
foremost 
experts on  oil pricing. 

Jim was very surprised when  oil prices went soaring above $100. There 
is simply not a worldwide demand  (or shortage) of oil to justify that price. 
Certainly the depreciation of  the value of US dollar was a factor, but it 
alone was not a good  explanation why oil was above even $60 per barrel. Now 
an 
explanation is  emerging that may impact many of you.

Apparently, the increase in prices are due to more pension and 
investment  fund investing in the commodities market. Yup, your very own 
investment  
and pension fund may have contracted to buy oil at $130 per barrel. These  
funds 
now are holding about 1/3 of the commodity paper for oil futures  when they 
previous held virtually none. 

If you think about what the recession is going to do to the demand  
for oil, these funds are in a high risk position. So you might want to  check 
where your investment fund has its money; apparently even some of  the large 
public employee pension funds have taken positions. Seems like  the 
investment firms 
debacle in mortgages is about to be followed by a  debacle in oil futures. Of 
course, it their investors moneys.  

Jim had just finished an interview with  Fox Business News this 
morning on this very subject, so if you watch the  chanel you may hear him in 
person. 
Not a big Fox fan, but this time they  have a real expert. 

Cary







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**************Get trade secrets for amazing burgers. Watch "Cooking with 
Tyler Florence" on AOL Food.      
(http://food.aol.com/tyler-florence?video=4?&NCID=aolfod00030000000002)