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Home › Forums › Financial Markets/Economics › Market Call: Short the oil sector › Shorting is risky. You

September 17, 2007 at 1:30 PM #84845
asragov
Participant

Shorting is risky.

You hopefully are very well aware of what is going on in the oil industry to make such a bet.

Very smart, connected people, even the ex-Chairman of Shell (see link), see significantly higher oil prices ahead.

http://www.hemscott.com/news/latest-news/item.do?newsId=50047106624331

Also see:

http://www.energybulletin.net/34860.html

Will a recession in the US stop the growth of demand for oil in China? The US is only a small market for China’s exports, so, probably not.

The basic “peak oil” theory is that reserves in the Middle East are much lower than what is claimed, and that production of other fields is now peaking, while demand just keeps growing:

http://en.wikipedia.org/wiki/Peak_oil

Good luck with your trading, but be very careful!