Oil Up Quicker than Expected

Oil prices are rising quicker than expected.  Earlier this year they were struggling out of the pits from the end of 2008, when a barrel was at around $30.  Now, a barrel costs $71.05.  Economists are getting so excited that some are saying it will have reached $80 within the next fortnight.

Is it dangerous to get too excited though?  After all we all know about market volatility after last years’ highs and lows.  Yes, oil is affected by supply and demand but let us not forget the commodity trader, the financial markets.  Their speculation can add a lot of weight to prices.

For now, the majority of analysts and traders are choosing to remain optimistic.  After all there is so much in the way of positive signs coming from the USA and Europe – increasing housing market interest, drops in job cuts – that maybe it is time to take the plunge into riskier waters.

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