Demand, And The Dollar, Will Guide Oil |
| Forbes - Aug 22, 2008 |
First the Iran premium, now the Russia premium--geopolitical fears seem to be taking over the energy markets, with oil still hovering at $120 per barrel on Friday morning after a $6 leap on Thursday. (See "Oil Sparked All Over Again") But to ignore the big picture of waning global demand, as well as the trajectory of the dollar, would be a mistake.
Although Russia is grabbing the headlines as a major oil and gas exporter playing hardball with the West, Thursday's rise in oil prices also got a boost from a fall in the dollar--the second hiccup in its largely upward journey this week. And although Russia has used the "gas weapon" in past spats with both Ukraine and Georgia, it is difficult to see what situation could provoke a wilful, long-term disruption in energy flows to the West.
Read Full Article from Forbes
- Posted: 2008-08-22 10:30:10
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