Just a strong reflection…..we’ve seen huge abnormal speculative play in going Long on Oil and shorting the Dollar at the beginning of the Year 2008….Oil flared from US $ 70/barrel to more than double crossing US $ 145/barrel without significant change in supply or demand……and the dollar hit record lows earlier in the year…The Rupee had appreciated to Rs 39 to the Dollar
Now the last two months has seen these positions reverse and cancel out and Oil has slumped back to US $ 100/barrel and the Rupee has suspiciously depreciated back fast nearly 14% to near Rs 46 to the dollar
The stakes were huge…billions of dollars have been won and lost here and I’ve got strong suspicion and less evidence to prove that sovereign funds were involved in this gamble…especially those of a Middle East country that controls a large Part of Oil Supply…motives are easier to find…to fund elections for one.
It is difficult to believe that exchanges and regulatory authorities in USA had no clue of this abnormal gamble that has played out this year….fundamental reasons doled out repeatedly for abnormal price movements have been overhyped to justify such movements
A lot of Big People,Institutions,Organisations and even Countries have made a Lot of Big Money
Just a strong reflection