Global Investing

from Global News Journal:

Oil’s run-up outpaces most price targets… more upside?

June 11, 2009

    The recent run-up in oil prices could have further to go as most analysts are likely to begin raising their year-end oil price targets, according to market research firm Birinyi Associates in Stamford, Connecticut.    "Given several considerably lower expectations, we think it is reasonable to expect upgrades," they said in a research commentary, noting that crude oil prices were already above most firms' year-end targets.    U.S. front-month crude hit an intraday high of $73.23 on Thursday, the highest intraday level since prices hit $75.69 on Oct. 21.    A year-end oil price target of note recently came from Goldman Sachs, which raised its end-of-2009 oil price forecast on June 4 to $85 a barrel from $65.    Oil's climb partly reflects weakness of the U.S. dollar and expectations that demand may be picking up as the global recession abates.--- Graphic courtesy of Birinyi Associates, Inc.

from Commodity Corner:

Correlation Between Oil and Equities Markets

May 7, 2009


Oil prices have been trading in an unusually strong positive correlation with equities markets over the past few months on hopes that signs of an economic recovery could mean a boost for energy demand.