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Tumbling Oil Prices May Herald a Bigger Dive to Come
Back when the world economy was booming prior to the credit crisis, speculation about how high the price of oil could go was all the rage on Wall Street. As demand surged, investment bank Goldman Sachs famously predicted $200-a-barrel prices, while more provocative commentators saw the price tag reaching $1,000 a barrel.
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tschuma417
2/8/2010
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tschuma417
2/8/2010
tschuma417 is playing it
Short0.77%
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Long12.29%
Short0.91%
Long15.65%
Long4.55%
Short4.86%
Short0.09%
I am playing this headline with (USO USL OIL SZO DTO DBO SCO DNO) because But consider this: Even those diving prices, though, could start looking high if the massive oil reserves in Iraq are rapidly brought onto the market amid growing political stability in the country, as some analysts anticipate. And given the enormous impact oil prices have on world economy -- influencing everything from overall growth rates to investments in alternative energy, which require high oil prices to make other technologies competitive -- investors would be wise to keep a close eye on their likely direction.
 
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