Is diversification more important than ever as Dollar confidence vanishes?
*Associated Press, May 21, 2008
“Oil Crosses $130 a Barrel for First Time
Crude prices touch fresh trading high as supply worries mount, dollar weakens.
Oil prices rose above $130 a barrel for the first time Wednesday as supply concerns mounted and the dollar weakened.
U.S. crude for July delivery traded as high as $130.25 a barrel in electronic trading. The July contract closed at $128.98 in the floor session.
The dollar had become less of a factor as attention turned to supply and demand concerns, but that seems to have changed this week.
‘We’ve seen an about-face turn on the dollar in the last couple of days,’ said Mark Pervan, senior commodity strategist at Australia & New Zealand Bank in Melbourne.
‘It looked like it was starting to recover, but I think there’s a less certain outlook at the minute and … enough reason to be buying commodities as a currency hedge again.'”
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