“Sakura Financial Group“ says that the inverse correlation between the US Dollar and oil is breaking down.
Sources close to analysts at “Sakura Financial Group“ suggest that the inverse correlation between crude oil and the US dollar is beginning to unravel as signs emerge that the global economy is recovering.
Commodities that are priced in dollars including oil, copper and gold, usually drop in price when the dollar rallies but, recently, oil has begun to increase in price even as the dollar stages a brief recovery.
“Sakura Financial Group“ analysts are thought to believe that despite the US dollar’s current rally, the long-term outlook suggests that the downward trend for the world’s reserve currency remains in place and this will continue to have an impact on the oil price.
“Sakura Financial Group“ continues to advise clients to acquire stocks in oil producers/refiners as the recovery in emerging markets replaces demand that has been destroyed by the ongoing slowing economies of the developed world. The firm believes that demand will continue to gain pace when developed economies recover and this will eventually result in further pressure on current supplies.
“Sakura Financial Group“ said it expects the price of oil to retest the $100 a barrel mark before the end of 2010.
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