SINGAPORE (Reuters) - Current oil prices are the result of financial market gyrations and do not reflect the supply-demand dynamics of the physical market, energy consultant and prize-winning author Daniel Yergin said on Monday.
Crude oil benchmarks are holding near $80 a barrel, having doubled from under $40 at the end of last year, after plunging during the financial crisis from all-time highs. But bulging inventories are keeping gains in check. "Oil prices today do not reflect the world's supply and demand fundamentals. Instead, prices are reflective of the weak dollar and expectations of a strong economic recovery," Yergin told reporters on the sidelines of a conference.
Full Story: Oil reflects dollar moves, not market dynamics: Yergin - Reuters
Crude oil benchmarks are holding near $80 a barrel, having doubled from under $40 at the end of last year, after plunging during the financial crisis from all-time highs. But bulging inventories are keeping gains in check. "Oil prices today do not reflect the world's supply and demand fundamentals. Instead, prices are reflective of the weak dollar and expectations of a strong economic recovery," Yergin told reporters on the sidelines of a conference.
Full Story: Oil reflects dollar moves, not market dynamics: Yergin - Reuters
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