Oil price have not reflected real demand signals for many, many years now. We are living in a world where traders take their cues from the equivalent of chicken bones and coffee grounds rather than from analyzing the real world. In a healthy economy, the financial world is a thin layer on top of it. Today, the financial economy is a world to itself that does not need its grounding in the real world. It will all end in tears but until it does, traders will take their chicken bones.
Oil prices have been approaching – and in some cases topping – the $40-mark recently, but could the recent uptick not sufficiently reflect demand trends?