There’s no shortage of commentary on the fact that continuing unrest in Egypt appears to have driven up oil prices. But what is it precisely that’s sparking market concern?
Much of the market reaction may be (sort of) irrational. Big and unexpected things are happening in the Middle East, and people rightly associate the Middle East with oil. Traders didn’t have time to analyze the full consequences of Friday’s developments before placing their bets. Odds are that many bought oil as a simple and instinctinve way of protecting themselves against an uncertain situation. Read more »