The paper further points out that in the last few weeks, the trend reversal in crude oil prices has been observed which dragged prices from its peak US$ 147 per barrel now. The reversal has been amplified by speculators resulting heavy selling in crude futures.
It is observed that crude oil investors sold US$ 39 billion worth of oil futures between July 2008 and September 2008, dragging crude oil prices to near 2008 low levels. Speculators that have driven the prices up have burst the bubble now.
But past behaviour of crude oil prices since 2004 suggests that crude is not credible, it is a highly volatile commodity and would behave on the same pattern in the future also, concludes the Paper.
Associated Chambers of Commerce and Industry of India
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