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Wednesday, 22 February 2012

WHY THE RALLY IN CRUDE OIL MAY BE SHORT-LIVED | PRAGMATIC CAPITALISM

A number of analysts are pointing out that oil prices may have moved up too quickly and the move is potentially unjustified. These price increases (with a large move today alone – see chart below) have been driven by two factors:

1. The Greek “resolution” may be pointing to a global economic stabilization that will increase demand.
2. Iran’s belligerent attitude and nuclear ambitions are creating fears of supply disruptions.

Let’s address both of these items.































Today’s move in Brent crude