Thursday, April 17, 2008
Oil prices have surged to almost $115 a barrel
"Hot money funds are also playing a role, trading oil as a sort of "anti-dollar". Crude is moving in reverse lockstep with the greenback, pushing ever higher (with double or triple leverage) as the dollar reaches fresh lows against the euro. Surging oil prices are in turn stoking inflation, causing investors to bet yet more on oil futures as an inflation hedge. "This has entered a vicious spiral," Dr Lasserre said"