Wednesday, June 4, 2008

Is Oil Market Beginning to Burst

Like the housing industry is the oil market bubble beginning to burst? With the daily drop in prices and news of the market manipulation investigation it makes you wonder what's ahead for investors. News leaking out that U S imports of foreign oil are down and production of gasoline and diesel at U S refineries are running well below capacity leaves serious questions for investigators. Add to the news that ships are being delayed from offloading could lead to an oil glut in the market have some investors selling off their futures.

Who will be hurt in a mass sell off? Small investors and the banks that are loaning the large portion of funds to investors. Wealthy investors that only pay 6% of the cost per barrel and bower the rest from the investment banks can simply default, leaving the banks to pass on the loss to other customers. Is it time for small investors to divest their funds into other markets before it's too late, maybe.


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