http://www.rashedhaq.com/2008/10/18/crude-oil-price/ A way to share our photos, experiences and life’s-little-events with family and friends, who are spread all over the world. Sat, 12 Dec 2009 21:33:54 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://www.rashedhaq.com/2008/10/18/crude-oil-price/comment-page-1/#comment-17 Rashed Sat, 15 Nov 2008 01:04:28 +0000 http://rashedhaq.com/?p=422#comment-17 Aditya, I agree with your point #1, but that was not what I was saying. I think that part is similar betweek securities and commodities. But my point was that the difference is that the stock never gets consumed. You buy and hold and sell. But with commodities, it eventually gets consumed. And the price will drive the level of consumption, to a point. Aditya, I agree with your point #1, but that was not what I was saying. I think that part is similar betweek securities and commodities. But my point was that the difference is that the stock never gets consumed. You buy and hold and sell. But with commodities, it eventually gets consumed. And the price will drive the level of consumption, to a point.

]]> http://www.rashedhaq.com/2008/10/18/crude-oil-price/comment-page-1/#comment-16 Aditya gandhi Fri, 14 Nov 2008 04:14:41 +0000 http://rashedhaq.com/?p=422#comment-16 two thoughts: 1. even for stocks there is a big options/ futures market which creates more demand/ supply than the no. of physical outsanding shares. and as future prices affect the spot (and vice versa) so I would think that the it is not very different from the commodities world. 2. Prices for oil in the next 3-10 years will depend a lot on costs for other forms of energy. We all know that oil is becoming a scarce commodity and the balance point will be where it makes other sources of energy more viable.. e.g. right now $90-110 mark for crude makes oil sands more viable. Similarly there will be breakeven points for other sources of energy which will eventually drive reasonable levels of price for oil. two thoughts:
1. even for stocks there is a big options/ futures market which creates more demand/ supply than the no. of physical outsanding shares. and as future prices affect the spot (and vice versa) so I would think that the it is not very different from the commodities world.
2. Prices for oil in the next 3-10 years will depend a lot on costs for other forms of energy. We all know that oil is becoming a scarce commodity and the balance point will be where it makes other sources of energy more viable.. e.g. right now $90-110 mark for crude makes oil sands more viable. Similarly there will be breakeven points for other sources of energy which will eventually drive reasonable levels of price for oil.

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