22 July 2011

Bucking the market

In case you hadn't noticed, The Independent reports:
So that went well. A month ago tomorrow, President Obama surprised world markets by persuading the International Energy Agency to release some of its oil reserves for only the third time in its 37-year history. The oil price immediately slipped back from about $113 a barrel to about $103.

Job done? Well, not really – we were back to $118 or so yesterday, when the IEA announced it would not extend the initiative, which was initially slated to last a month. If the aim of the US-led release was to bring down oil prices, it was successful for all of a fortnight.

Hey, things could be worse. (But not much worse.) Meanwhile don't expect a reduction in the price of petrol.

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