"Oil is Oil..." , Buy!!!

Falling oil prices is no mystery… because we have three major economies – the US, Europe and Japan – reeling under recession… several rounds… And, the two major emerging economies – INDIA and China – are also facing overheating… The monetary cycle in the emerging world is trying to cool down inflation – the down cycle, means less demand… But, low oil-prices will make the oil more attractive from the view of investment… A lot of investment should flow to the companies in terms of share-prices, but this is true as long as investors especially in the stock market view that the prices has hit the bottom, because it is profitable to invest low and sell high... Oil is a cartel-market – oligopoly – where firms can manipulate supply to control prices and profits… Oil prices are an indicator of demand for oil…  Oil demand is (ceteris-paribus) price-inelastic, means movements in prices affect demand little, but if the prices were low, people will consume more… Its utility is high, therefore its price is high, low prices will increase demand, but oil companies are restricting the supply conditions which is likely push prices up in the next-period… This happens everywhere… Major sectors are mainly oligopoly-markets, according to the latest Nobel winner in Economics… Oil is still in demand for reserves… But, investors should be cautious low prices are not a signal of low demand ahead for too long because “oil is oil” after-all… It is an opportunity for investment…