Today was a bad day for oil as prices dropped 4.1%. This isn’t much of a surprise considering the slowing Chinese economy, that likely has seen a substantial over-build in fixed assets. If it weren’t for multiple currencies printing money at very high rates, I’d be much less bullish on oil, and I believe on supply/demand it is overvalued. The United States really needs to focus and build out a natural gas infrastructure for automobiles which would stimulated the economy tremendously, and reduce the huge transfer of wealth that occurs on a daily basis when we are reliant on foreign oil.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.