Chart of the Week: Oil Futures and the Markets
As the charts below show, has oil not only traded higher but futures contract looking several years ahead are also appreciably higher. In the recent past, nearby future contract were higher but distant futures contract contemplated lower oil prices. That has begun to change over the past quarter.
High oil prices are no longer being looked at as a “temporary event of uncertain duration.” Between China's growing use of petroleum, their global attempts to assure a study supply, the Iran situation, high Oil may be a persistent part of the market’s future (Notice no one is even talking about post hurricane recovery anymore).
Quote of the Day
"I don't think the heavy
stuff is going to come down for a while yet."
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How long does "temporarily" high oil price have to last to make the CPI ex oil and food become CPI ex food?
Posted by: pjfny | Jan 23, 2006 12:53:06 PM
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