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Supply and demand? Not for oil

While I was not a finance major in college, I do know a few things about supply and demand. If there is ample supply and lower demand, prices should be low. If there is limited supply and high demand, prices should be high. I guess oil investors never really studied supply and demand economics.

Black gold is higher in European trading, as investors believe that the U.S. recession may have bottomed. Such a bottom could signal rising demand, which is enough for beleaguered black gold investors. In fact, Gerard Rigby from Fuel First Consulting in Sydney, Australia, noted, "The feeling is we've seen the worst of it, and the only way now is up . . . Some of this is also a trading momentum play."

Continue reading Supply and demand? Not for oil

Russia and commodities

Relatives of this blogger just returned from a trip to Russia. What were their thoughts? Not good. Poverty is aplenty with both kids and the elderly begging for their next meal.

This blogger also understands that Ukraine is also having a tough time. Mostly an agrarian economy, it is having difficulty building the governmental support systems that are so vital in supporting farmers in the more developed countries.

Why is Russia not progressing faster with oil prices staying at high levels? We are in the information age not the industrial age. No matter how great the demand for commodities is to support the booming global economy, the commodity-focused economies simply do not keep up with the information age economies.

Russia's plight is a good example for picking stocks. While the supply and demand balance for commodities currently looks pretty good, do not forget about the information age stocks.

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DJIA-74.9212,454.83
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Last updated: May 27, 2012: 07:30 PM

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