Crude has been rallying and is once again approaching $50
per barrel. The mild December lulled traders (who apparently forgot it gets cold
in the Winter) into leaning the wrong way. In addition to the recent cold snap,
Iran has been of particular interest as tensions have been escalating.
35 Year Oil chart
source: Chart of the Day
CotD writes: Today’s chart illustrates the degree by which OPEC oil
production plunged and oil prices surged following the last Iranian crisis
(1979).” Following the 2001 US recession, the world is increasingly relying
upon greater OPEC oil production and meet its energy appetite, particularly
from U.S. and China.
Quote of the Day:
“Whenever you find yourself on the side of the majority, it
is time to pause and reflect.”