Investing & trading with exchange-traded funds (ETFs) and closed-end funds (CEFs). Strategies & analysis but no buy or sell recommendations.
Visit SeekingAlpha ETFs
The Brightest Stars in the Commodities Boom, Part I
Posted on June 20, 2008
Thursday saw the market's kneejerk reaction of oil dropping of $4 a barrel, in response to China's announcement of gasoline and diesel price boost of 16%. Most traders perceived higher price will suppress Chinese demand on oil. They know nothing about what's going on in China.After the price boost, gasoline still costs only US$3 a gallon, far cheaper than prices in the US and Europe. It will not supress demand at all; consider that only wealthest 3% of households in China own a vehicle. The Chinese transportation fuel market is in severe short supply. Refineries are unwilling to increase produ...
Original article link
Subscribe to SeekingAlpha ETFs