Proof That Oil Prices Are Driven by Speculation

Now those who say Oil prices are driven purely buy supply-demand economics are looking for places to hide. Crude oil for October delivery yesterday climbed more than $25 a barrel. Oil reached $130 a barrel yesterday, 44 percent more than six days earlier. But the November delivery contracts are still trading at 108$ per barrel (correct at the time going to press).

This surely renews the calls to curb speculators on commodity market. I hope congressmen take advantage of 700 Billion $ bailout plan by US President to pass on their long standing demand to speculation legislation in the financial markets legislation.

Just before the Lehman crash, there were trillions of $ flowing into commodity market especially in crude oil speculation.

Comments

Strategic Assessment of Indian offshore IT and IT Enabled Services Industry

Introduction Outsourcing is a strategic decision taken by firms to achieve competitive advantage whereby products or services are produced more effectively and efficiently by outside suppliers. As par McCarthy & Anagnostou (2004, p. 63), "outsourcing is an agreement in which one company contracts-out a part of their existing internal activity to another company." Offshore business process outsourcing refers to outsourcing to vendors outside the country, predominantly to developing nations to leverage the cost advantage. To remain competitive and focus on core competencies, companies are driving toward offshore outsourcing as it helps free up resources (SCHEIBE, MENNECKE, & ZOBEL, 2006, p. 283) and help higher management focus on core business requirements (Blumberg, 1998). The offshoring provides effective means of reducing cost by outsourcing non-core activites to third party who can provide similar, if not better, services at lower cost. India is the favourite desti...

Organisational Culture Case Study : Perot Systems India Ltd

The assignment is to produce a case study using the relevant concepts, theories and models introduced in the module, describe and analyse organisational culture and discuss, using the examples from the organisation, whether organisational culture can be managed. Click below link for flash content Organisational Culture Case Study : Perot Systems India Ltd Organisational Culture Case Study : Perot Systems India Ltd. Rajesh Purohit, University of Leicester, UK The assignment is to produce a case study using the relevant concepts, theories and models introduced in the module, describe and analyse organisational culture and discuss, using the examples from the organisation, whether organisational culture can be managed. Introduction The case study uses interpretive methodology including ethnographic methods and action research within an interpretive paradigm. The research builds on years of participant observation and interview with employees and human resource department, statisti...

What insights does the “resource based view” of Strategy add to an understanding of competitive advantage that the “design school” model leaves out?

Competitive Advantage A company is said to be in competitive advantage when it develops or get hold of attribute which helps it to do better than its competitors in terms of higher rate of return on investment. Competitive advantage occurs when firm develops or acquire unique attributes which help it to outperform its competitors. This attributes can be new technology, business process, highly skilled technical resources etc. Resource Based View (RBV) Design school theory of business strategy caters mainly for external environment and leaves out any internal resources. Resource base view (RBV) is used to determine internal resources from within the firm contributing towards greater financial performance (Kearns & Lederer, 2003). The core of the RBV emphasises that organisation to maximise rate of return and financial profitability and form sustainable competitive advantage, should have heterogeneous resources and capabilities. The resources in question should be inimitable an...

rajesh purohit / blog

Search This Blog