Federal Reserve Expansion Will Boost WTI, but OPEC Still Holds Cards
Occasional Memo: November 4, 2010
The recent moves by the Federal Reserve to expand the money supply will give crude prices a double shot in the arm. On the one hand, these steps will likely raise inflation in the short term, encouraging investors to move toward real assets, particularly commodities. In addition, the dollar should also fall versus other currencies, encouraging more funds to shift from currencies into oil as a result.
