Wah, some new development happens to our market. Yesterday KL Composite Index tumble -16.13 points at 1,105.04 points. Why the index drop so much? What has happen? Still remember how our market went up during last year?
It is all because of our Crude Palm Oil futures prices. Basically our market KL Composite Index last year went up so much and event creates new all time high because of the increase of prices in Plantation stock. Once the price of the plantation counters start to move down, it will have an impact on our KL Composite Index.
If we take a look at the Crude Oil prices for yesterday closing. The Crude Oil prices for August contract already fell for four days. Its has drop for almost USD 17.77 per barrel from its high of USD 147.27 per barrel (11.07.2008) to the close yesterday ( USD -0.41 per barrel) at USD 128.88 per barrel. The Crude Oil prices seems to be getting weaker and weaker. The decline has a litte impact on Crude Palm Oil prices.
If we take a look at the Crude Oil prices for yesterday closing. The Crude Oil prices for August contract already fell for four days. Its has drop for almost USD 17.77 per barrel from its high of USD 147.27 per barrel (11.07.2008) to the close yesterday ( USD -0.41 per barrel) at USD 128.88 per barrel. The Crude Oil prices seems to be getting weaker and weaker. The decline has a litte impact on Crude Palm Oil prices.
In order for the Crude Oil prices to be sure or confirm for its downturn (heading south), a break of its supports level of USD 122.68 per barrel will signal a downturn.
Any future decrease will have a significant impact on the commodities prices. How far the Crude Oil prices will fare? It all depends on the supply and demand or the hedge fund or maybe the speculators.
Special bulletin - Last week various analysts said there was talk that Mexico, the world's fifth largest oil producer, was hedging its bets - the country was said to be signing contracts to deliver oil several years into the future at today's prices. Essentially, it was betting oil prices have peaked.
One analyst, speaking on background only, said he had confirmed Mexico was locking in futures contracts. He said it was being done at the behest of the Mexican government, eager to balance a long-term budget, rather than a bet by state oil company PEMEX, that prices will fall.
But could Mexico's move inspire similar steps from other oil producers, and cause oil prices to fall further?
"Absolutely," said Neal Dingmann, senior energy analyst at Dahlman Rose & Co., a New York-based energy investment boutique. "It could create a top in [oil prices] in the near term."
Dingmann said about 50% of the production from the firms he covers - mostly small firms - has been sold for future delivery at today's prices.
No comments:
Post a Comment