Oil Under $100, but Why?
$100 oilhas been the talk of 2011, and it has yet to slow down. There has been a lot of media surrounding the value of the U.S. Dollar this past week as well. Sounds to me like there is probably a correlation between the two. I did some research and found some research, done by Tatyana Shumsky, that is right on point.
" …The dollar slipped against the euro after upbeat data on German business confidence boosted the single European currency. Crude-oil futures recouped some of their recent losses as the dollar slumped. A weaker greenback raises the appeal of dollar-denominated commodities as they seem cheaper for holders of other currencies…
…Oil analysts at Goldman Sachs raised their price forecasts on Brent crude Tuesday, saying global economic growth will continue to pressure the spare capacity among major oil producers."
Read the entire article here: http://online.wsj.com/article/SB10001424052702304520804576342973192236028.html