Monday, July 21, 2008

Oil futures: Know when to hold 'em

From CNN Money:
Rumors that Mexico is locking in oil contracts for future delivery at today's prices prompt questions of whether oil's record run has come to a halt.
In the last three days oil prices have fallen by roughly $10 a barrel. Many analysts say slackening demand, or the threat of it, is the main culprit.

But another force could be at work in the background. Last week various analysts said there was talk that Mexico, the world's fifth largest oil producer, was hedging its bets - the country was said to be signing contracts to deliver oil several years into the future at today's prices. Essentially, it was betting oil prices have peaked....MORE