How aviation stocks prices and paints company stock prices and tyre stock prices are influenced ?? any idea
:here starts the story.. When crude prices fall, the airlines company prices shoot because the flight ticket price are fixed on real time basis by the company like jet airwaays...indigo
Now our next question
WHY CRUDE OIL PRICE OIL FALL ?? any idea
there is some thing called SHALE GAS.. when ever there is oil extraction there is something called shale gas that is produced .. when this shale gas is availabilty increases consumer prefer this aas it is an alternate low cost fuel when compared to the crude oil. So consumption of crude reduces....
:Why the manufacturer of crude should reduce his price ?
All crude produced is exported to other countries.. through ships. it is not like once you order then they will dispatch .. OMC will extract aand put in vessels and start transporting to the countries whether the buyer places order or not.. Once buyer requests for crude it will be delivered immediately. Now suddenly if the buyer goes to alternate fuel. imagine the condition of the ship. it has to stand in the middle of the ocean.. which is difficult. if it goes to nearby port then the port will charge huge rent for parking the ship in ports. So manufacturer is forced to sell at lower price..
now we will explore the secondary effects ?
by products of crude are huge They are used in for manufacturing paints and tyres. Hence typre stocks like ceat, jk tyres , apollo tyres, ceat are increasing. also paint stocks like asian paints and berger paints are increasing..
:when crude price decrease
oil processing company should decrease the selling price of byproducts.
then paint manufacturing should buy this
then he should use that and reduce his selling price or sell at same price thereby getting higher profit. For all these to happen it will take time..
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Now demand minus production is the storage of crude. or it is the inventory maintained.. Every wednesday at night 8 pm we get the crude inventory data..
[10:23:01 AM]:
Once the crude price decreases there will be slight increase and thereafter some small profit booking will happen . Now we have to find out how much time does the stock price takes to exactly differentiate this..
we have to identify the short term correction in prices and filter the noises and catch the right trend.
Trusting that your support will be available for the same..
Please share this knowledge to atleast 5 persons you know and ask them to share to another 5 persons each..
thats why i frequently asked WHAT ARE THE SECTORS that you are interested in ? What are the stocks that are under your watch ? So that i can concentrate the same and few others ?
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