Here's a headline you won't see too often 'Oil Prices Plunge Amid London Explosions'. Typically oil moves upward on political uncertainty and terrorist activity. Perhaps at $60/barrel oil the market views economic softness as a greater threat than political instability. Perhaps there are several terrorist attacks already "priced in".
Do any readers have guesses? Please put them in the comments below.
Might this perhaps indicate that oil price movement right now is being driven by volatility of demand, rather than volatility of supply?
Posted by: A Stalwart | July 07, 2005 at 08:49 PM