Over-Optimistic Oil?

[liadnan]

Apparently the news of the death of Zarqawi has finally taken the oil price back to below $70/barrel. Is this not just a tad over-optimistic? I have a sad suspicion that the comment of the analyst Edward Meir quoted in the BBC report: "the situation in Iraq has now become so chaotic, that it transcends the death of one man, influential as al-Zarqawi was," is perhaps a little closer to reality...

Comments

[chickenfeet2003.livejournal.com]

Some muddling of cause and effect here perhaps? The lowering of tension in the Iran situation may also be a factor.

[liadnan]

Well, they mention prices were already on the downturn because of Iran in the article. But a much sharper drop followed immediately on the news.

[chickenfeet2003.livejournal.com]

Ah well! Far be it from me to suggest a commodity market might behave rationally.