The oil, a fossil fuel? Euphemism fashionable!
The Democrats want to restrict speculation on oil. A Democratic bill intended to contain speculation, seen as responsible for high prices of oil and gas, has successfully passed a procedural step in the U.S. Senate, but its final passage is far from assured. The Republican Party, supported by the White House, could indeed block the vote unless certain amendments intended to increase U.S. production of black gold will be added. The bill would require institutional traders to give more details on transactions unregulated over-the-counter while limiting the open positions speculators to reduce the number of oil contracts that they can control. The light Crude Oil has already dropped by about 15% in seven trading sessions from the level of $ 147.90 than $ 126.37. Our objective remains on the level of 108.00. The confirmation of our strategy this fall commodities and correlated decline of the Euro against Dollar serve to support our scenario of a bottom of all equity markets in July 2008.