Is oil going to $30 soon?
Inventories came out today and we are or will be drowning in oil in 90 days. So what does that bode for oil companies and NZO in particular?
There is one heck of a slow down in the US with Microsoft laying off 4500 and these are the big name companies let alone small business so demand for gasoline is falling etc. etc.
Will this affect the NZO SP which seems to be in a trading range and holds !.20 I'm waiting for it to go to 1.15 - 117 and then will jump in as I doubt it will go lower.
There is a nasty low going to happen on the DOW and S & P which will drive down NZX and ASX briefly but who knows when that will be, next week, next month or next quarter.
I don't pay any attention to what Goldman Sachs analysts come out with, they have a vested interest in talking up the price as GS has bought enormous numbers of contracts and owns oil infrastructure in the US and besides any fool can come out and say oil will be higher in a years time.
So back to my question will $30 oil have any affect on the NZO SP ?