BAGHDAD (Reuters) - Iraq's Oil Minister Adel Abdel Mehdi said on Sunday world oil prices were gradually rebounding and he expected to see a barrel of crude selling at around $65.
"I don't think they will return to their previous levels. I can see that oil will be sold at $64 to $65 a barrel," he told a news conference in Baghdad.
I often see people trading and investing based on news like that. Will it go up? Will it go down? The answer is two times yes. There will be another bubble and another crash one day.
The reason that politicians from countries heavily dependant on oil prices say such things is that they have no choice. Truth is we might see some ugly stuff in the future if some countries start to be severely impacted by low oil prices.
From our perspective, small traders and investors, we should not try to time the market. We should simply buy what's cheap by historical norm. Is oil cheap now? Yes it is.
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