Investing: Analysts Predict $100 Oil
Investing in oil “is a straightforward, and importantly, liquid way to play,” according to Citi Investment Research analyst James Neale. A recent Seattle Times analysis said that interest rate cuts enacted by the Federal Reserve in September may drive the price of oil higher. “The cut depressed an already weak dollar - lower interest rates push investors to higher-yielding currencies. This made oil and other commodities priced in dollars appear cheaper to overseas investors, boosting prices,” wrote the Seattle Times. Tom Kloza, chief oil analyst for the Oil Price Information Service, reaffirmed Neale’s position in a recent BusinessWeek interview. “We don’t need an extraordinary circumstance to take us to $100. With more investment money in oil and a weak dollar, we could hit that level,” he said. Check our Industry News section often for the latest oil and gas investment news.Published Tuesday, October 23rd, 2007 at 6:00 am and filed under Industry News.