Carpenter said:As an average domestic consumer is there any way we can "hedge" against possible future hikes in the price of heating oil?
demoivre said:TI believe hedge funds are behind the rise - they couldn't give a This post will be deleted if not edited to remove bad language what fair value is , it's performance they're after and as long as they are selling for more than they bought they're quids in. The whole thing seems like a huge bubble to me and like all bubbles when it bursts it could come crashing down fairly sharpish as long positions are rapidly covered.
Eurofan said:could someone elaborate or link to what hedge funds are and how they could have a significant impact on oil prices? Thanks.
CoffeeBrew said:What's not generally known though is that there is estimated to be $1,000bn invested worldwide in hedgefunds and as much as much as $300bn of that is administered out of Ireland.
CoffeeBrew said:Here's one definition (Google can provide you with many more plus additional details)
A fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives.
Hedge funds are exempt from many of the rules and regulations governing other mutual funds.
What's not generally known though is that there is estimated to be $1,000bn invested worldwide in hedgefunds and as much as much as $300bn of that is administered out of Ireland.
30pc of global hedge funds, and 60pc of all European managed hedge funds are managed out of Ireland,
They are controversial but they've been attracted here with incentives and over 2000 Irish jobs are involved in administering them.
Traditionally, oil prices spiked at certain times of the year but then fell back again. Now it looks like the six-month and twelve-month expectation is for even higher oil prices
demoivre said:Meanwhile supply is likely to increase over the next few years . The combined effect should be downward pressure on price.
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