27.03.2015 - The oil price has bottomed out – here’s why
The oil price has been crushed since last summer. It’s gone from over $100 a barrel (both Brent and WTI, the main benchmarks) to as low as below $50. Two main factors have driven this: a healthy supply of oil, and strong demand for US dollars. But both those trends look at risk of reversing. And that could mean a rebound for oil. Oil prices spiked higher yesterday, as Saudi Arabia launched air strikes on Yemen. The price of Brent went up to nearly $60 a barrel, while WTI (the US benchmark) rose to around $52. As ever in the Middle East, the details are complicated (we’ll look into it in more detail in the next issue of MoneyWeek magazine). But keeping things simple, the Saudis and other Gulf Arab states are fighting Iran-backed rebels in Yemen, in an attempt to defend the Yemeni government...............................................Full Article: Source
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