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Originally Posted by Norton  Quote: |
Originally Posted by Jet Gorgon It's supply and demand. | Show me where supply decreased or demand increased because Iran conducted a missile test? IMO, oil price hikes in this case are based on pure speculation! |
Market prices are always hinged to forecasts. Always. The outlook for supply and demand is key. Sure, Iran conducts a misile test, the markets go into a tizzy coz traders add that unexpected risk to the overall outlook. As soon as news happens, it's outdated. ie, the market bets on the Fed raising/lowering/maintaining rates; if it goes as expected, there are no stock price changes as the shift is already discounted. The markets are always forward looking. That's why there are analyst estimates.