Has the Great Oil Re-flation Trade Backfired?

10/19/09 Baltimore, Maryland

While we were sleeping this morning, Asian traders (or western insomniacs) seemed intent on finding out:

No real news snapped crude oil out of its five month trading range of $65-75 a barrel… just the usual global rebound buzz. You can’t even blame the dollar – at 75.5, the dollar index is still lousy, but a few tenths of a point above last week’s 12 month lows.

So we wonder, at what point will this recovery trade start stifling the recovery? $80? $100? Or will gas have to cost $4 a gallon again before anyone notices? And if demand really is rebounding, can the world supply handle it?

Ian Mathias

Ian Mathias is managing editor of The 5 Min. Forecast.  We discovered Ian working as a full time rock climbing guide and writing on the side. As it turns out, markets and global economics can be extreme too… at least enough to keep him around. Since working for Agora Financial, respected media outlets including Forbes.com, the Associated Press, Yahoo, and MSN Money have syndicated his writing. He received his BA from Loyola College in Maryland and is currently studying writing at the graduate level.

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