Saturday 5 May 2012

Be careful of Crude Oil, Sensitive now!

Dear Friends,

Crude Oil falls hard these 2 days! Now Crude futures for May is below $100, at $98 now. Just today, it drops $5 now.

In this article, it states the reasons for the drop:

There are 2:
1) Today bad non farm report may signal weakening economy and demand
2) Chicago Mercantile Exchange, CME has instill higher margin rules for traders to trade crude, thereby sending the speculators flying. This happen when Silver hit the high of $50 a year back. The rule will start in 3 months, so there may still be some weakness in Crude.

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