27 December 2010

Volatility Alert: Crude Is Rising, But Not Because Of Demand

Business Insider had an interesting post yesterday: "Just in time for Christmas, On Wednesday, Dec. 22, U.S. gasoline prices hit an average $3 a gallon for the first time in more than two years, according to AAA's Daily Fuel Gauge Report. Meanwhile, U.S. stocks and oil also climbed to the highest levels since 2008."

In the piece, Dian Chu speculates that "if the stars are aligned, that is, global economy [is] really picking up steam with two consecutive months of good U.S. jobs numbers, inflation concerns and QE could form a perfect storm for crude to hit $110 to $115 a barrel late March or April next year, after a few retracements, and if it breaks above $100. At that level, gasoline at the pump could hit $3.70-$3.80 a gallon range."

Read it here:

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