Wednesday, August 19, 2009

Why Oil Won't Return to Triple Digits

Oil prices have surged more than 50% from the start of the year, but don't expect a return to triple digits anytime soon, worries about the pace of an economic recovery will continue to drive near term volatility. "The market is manic right now," said Phil Flynn, analyst at PFG Best. "This is more uncertainty than I've seen in a very long time: big rallies followed by big breaks, and that's reflective of feelings about the overall economy." Concerns about the recession and more recently the timing of recovery have translated into some big swings. Worldwide consumption faltered as the global recession took hold, sending prices lower. There have been signs of a recovery, but it won't be a straight line.....Complete Story

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