20.06.2014 - 4 Things To Consider When Oil Prices Rise
Industrial commodities. The current increase in the price of oil is obviously related to the turmoil in Iraq, and concerns that ISIS will disrupt the countryís oil production. As a result, the CRB raw industrials commodity spot price index has been falling recently. The price of gold hasnít budged much, suggesting that the risks of higher inflation attributable to the recent rise in oil prices are offset by the risks of a recession. Stock prices. The S&P 500 was highly correlated with crude oil prices from 2008-2012. Since then, the two have decoupled, with stocks rising to new record highs since March 28, 2013, while the oil price has been moving sideways in a volatile range...............................................Full Article: Source
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