Hi
https://www.energyvoice.com/oilandgas/186199/oils-record-plunge-a-made-in-america-phenomenon-citi-says/
Oil’s record plunge a ‘made in America’ phenomenon, Citi says!
Millions of investors, particularly retail investors, are exposed to the volatility risk in the commodity and stock markets. Retail stock investors in China, India and several Asian countries have got hurt. Whilst Chinese market is directly affected by the
"Trade or Tariff" war with the USA, the others were affected by the impact of Oil price on their economy and domestic currency.
Many were shocked when the oil prices went up rapidly few months back. Now, we see the rapid fall in prices. The two countries that were involved in a political stand-off in the last few months were Saudi Arabia and Iran. Their supplies do not appear to
have contributed to the volatility.
Clearly powerful players (USA based Hedge Funds) are winning on all counts. (a) They win in the commodity market and (b) in the stock market. They are in-the-money in either direction of the market. After all, as they are “makers” of the market and the
price! Further, it is possible that they have made tons of money over the last one year betting on a strong dollar. Winner takes it all!
Want to take a punt on the movement of the crude oil price and stocks? Not for the faint hearted.