The BBC and nearly every other news service under the sun are reporting that supply fears, and not a few speculative buyers in the futures and options markets, have driven up oil prices once again.
Let's face it, commodities are on a roll. It isn't just oil (precious metals and even wheat) that is on the rise. And there seems to be no good reason to think this trend will abate any time soon. The commodities markets buyers are simply proving very optimistic, bouying prices pretty much across the board. The recent housing boom did much to aid this optimism, which has not let up much, even though the subprime problems in lending, and the housing market itself, have cooled off the earlier scorching trends in those markets.
Also the BBC notes:
"Iraq has the world's third largest oil reserves after Saudi Arabia and Iran and some of its largest oil fields are in the north of the country, near its border with Turkey."
This means that recent antithetical political developments with the U.S. and Turkey probably have played a significant role in what analysts simply call "supply fears." Mideast politics moves the oil markets far more than any other.
Gold and silver also remain "mid-east sensitive." Look for future market conditions to develop accordingly.
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