Sunday, January 08, 2006
Buying Black Gold as an Inflation Hedge?
Remember when $60/barrel oil was considered expensive? Now, it's the new floor:|
Oil prices rally by more than $1I can't help think this is linked to the euro-denominated Iranian Oil market (bourse) set to open in March. Using one's dollars to buy oil futures sure is a great way to hedge against inflation and also do a little currency speculation without much risk.
Crude oil prices have rallied by more than $1 a barrel after sinking to four-and-a-half month lows on Thursday.
US light sweet crude jumped $1.42 to settle at $64.21 a barrel, while in London benchmark Brent crude rose $1.59 to $62.72.
Concern over geopolitical factors in the Middle East had helped drive up prices, experts said.
But a rise in the number of investors opting to move into the market was the main factor for the surge, they added.
(Source: BBC News, Jan 6, 2006.)