Posted on in What we think!
Oil prices have had a staggering run in 2009. Oil prices have risen by 70% in dollar terms and 50% in sterling terms since the beginning of 2009. Reasons for this performance include expectations of a pick-up in demand as economies recover, OPEC production cuts, and a falling US dollar. The increase in the oil price has also coincided with a sharp increase in net long positions held by non-commercial interests (investors and speculators betting that the oil price will continue to rise). Continue reading