'"The most important commodity in the world is crude oil, whose prices have risen $20-25 on Brent and West Texas light crude since last autumn.
Even though Saudi Arabia played its role of swing producer to compensate for the loss of Libyan exports, OPEC spare capacity is now down to 2008 levels, leaving the world economy open to another demand shock. This means the risk on oil prices can only rise as the black swans, circle above the refineries, pipelines, loading terminals and oil wells of Arabia, home to 40 per cent of the planets proven oil and gas reserves. $140 Brent? Sadly, yes. The time, once again, the wolf is here.
Gold at $1400 is only due to carnage in the Arab world and the fall in the US Treasury bond yields on “safe haven” buying. Yet the Fed will move, Gaddafi’s regime will be vanquished, a massacre in Uncle Sam debt and CME Eurodollar futures is imminent as Uncle Ben plots a policy shift that will shake world finance. I expect gold to trade down to $1250 in 2011.".........read more here
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