Is there inflation?
*Financial Times, by Javier Blas, May 29, 2009
“Oil prices on Friday rose above $66 a barrel, setting a fresh six-month high and heading for their biggest monthly gain in more than 10 years, following Opec’s upbeat comments about oil demand in Asia at its meeting this week.
Abdalla El-Badri, Opec’s secretary general, said prices could rise to $70-$75 a barrel by the end of the year. ‘The outlook is improving,’ Mr El-Badri said over breakfast. But added: ‘The fundamentals are still weak.’
Mr El-Badri was explaining Opec’s decision on Thursday to keep its production unchanged, betting that the strengthening of the global economy will push prices.
On Friday, Nymex July West Texas Intermediate, the US benchmark, rose to a high of $66.36, up 29.8 per cent this month and on-course for its best monthly performance since March 1999, when it gained 36.5 per cent.
US crude has risen 48.8 per cent so far this year.”
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