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Thursday, March 10, 2011

Oil - The Game Changer

This phrase is often used in sports to describe one person that can change the outcome of a game. In many investor's opinion, Saudi Arabia is the country that is a game changer when it comes to oil. You are already aware of the unrest in Northern Africa and the Middle East and this has caused oil to spike (yes, also some speculation by greedy investors has also led to the spike). Many say that the spike would be even larger!!!...if Saudi Arabia was to see the same type of unrest. This piece of news was just broken:
The Associated Press out of Cairo has reported that a witness is indicating that Saudi police have potentially fired on people attending a rally in the eastern part of Saudi Arabia.

Play close attention to this because it is the game changer. Already you are seeing:

Oil moving higher (note: it was moving sharply lower today)
Gold rebounding (note:it was a losing ground today)
Currency Moves
  • Dollar moving down
  • Swiss moving up
  • Yen moving up
Stocks down to session lows

If Saudi Arabia experiences serious unrest you will see a sharp move to safety. These points outlined above will continue to be trades that occur because Saudi Arabia was the only 'stable' supplier in the region that indicated they would pick up the world's demand due to pipelines being shutdown in Libya.

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