Comments on: Why commodities crashed http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: FifthDecade http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/comment-page-1/#comment-26494 Thu, 12 May 2011 16:52:29 +0000 http://blogs.reuters.com/felix-salmon/?p=8199#comment-26494 Reuters:
“China, the world’s fastest-growing consumer of commodities, also is tightening monetary policy to tamp growth rates and control inflation, raising the prospect of a slowdown in demand for oil.”

Surely Reuters means a slowdown in the *increase* in demand for oil? Oil demand in barrels won’t get smaller just because China’s needs this year are only 8% more than last year instead of 10% more, meaning monetary changes in China will not adversely affect the current price of oil, only the futures price. Overall, the oil price is unlikely to itself go down, based on fundamentals such as this.

]]>
By: rinia http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/comment-page-1/#comment-26471 Wed, 11 May 2011 22:47:56 +0000 http://blogs.reuters.com/felix-salmon/?p=8199#comment-26471 @ rjs0 may 10 2.42 PM

You referred to a blog politicalcalculations, what I am missing here is the fall of prices from 4.00 till where they were talking about.
In this timespan the prices have fallen about U$ 3,50 it is mentioned that here should be a combination of Soros selling large qauntities of silver and probably also JP Morgan who has enormous short-selling in silver and it was time to rebalance their position.

]]>
By: politicalcalcs http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/comment-page-1/#comment-26434 Tue, 10 May 2011 19:31:12 +0000 http://blogs.reuters.com/felix-salmon/?p=8199#comment-26434 Too funny! We’ll have to go back and add a “satire” tag to our post so hopefully, nobody gets the idea that we actually have god-like powers over oil prices.

Still, it was fun to consider the possibility that a single blogger *could* have done it!

]]>
By: rjs0 http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/comment-page-1/#comment-26430 Tue, 10 May 2011 18:42:26 +0000 http://blogs.reuters.com/felix-salmon/?p=8199#comment-26430 here’s the blogger who claims to have caused oil to tank:

http://politicalcalculations.blogspot.co m/2011/05/changing-outlook-for-oil-price s.html

]]>
By: Pietro_F http://blogs.reuters.com/felix-salmon/2011/05/10/why-commodities-crashed/comment-page-1/#comment-26429 Tue, 10 May 2011 16:22:15 +0000 http://blogs.reuters.com/felix-salmon/?p=8199#comment-26429 “…the only people who really got hurt are sophisticated investors who can take their medicine.”

I find this doubtful. Those who got hurt worst were likely retail investors who had finally capitulated and purchased silver at frothy levels, only to have their worst fears confirmed by huge back-to-back multi-day drops. Given their tendencies in other markets, they probably sold right before the inevitable rebound.

]]>