Matthew Parry (born 14 January 1994) is a British racing driver. (wikipedia)
Although we had previously been predicting falling mid-year oil prices, all bets will remain firmly off until a clearer picture emerges with respect to Iran.
Prices have been supported by the ongoing geopolitical concerns (particularly Nigeria), colder weather and higher gasoline prices (which are rising on the changing U.S. petroleum-blending specifications).
It has been clear for a long time now that any such event would send prices skyrocketing given the world's current lack of spare capacity.
Oil prices dipped half a dollar as many traders looked to book profits, speculating that the previous price rally was an over-reaction to concerns that Iran could use oil as a weapon against the U.N..
Lower second- and third-quarter demand -- as the northern hemisphere warms, less crude oil is required for heating purposes -- will result in the already over-supplied global crude-oil market becoming increasingly bloated.
The sharp escalation in gold prices over the past year, up more than 40% over the past 12 months, clearly makes gold one of the wisest investment choices of recent times.
Despite our belief that crude prices will slowly trend down over the remainder of the year, further escalation in the U.N.-Iran standoff could quite conceivably send oil to a new record above $70.
Gold continues to rally on continued U.S. dollar weakness, a trend I expect to continue over the next week.
