Things are just getting crazy in the oil futures market. Why do I say this? Well, because we've gotten to the point that a prediction of higher prices can actually drive prices.
Oil is trading above $134 per barrel on an analyst prediction that prices could hit $150 by July 4.
Prices jumped $6.43 Friday shortly after Ole Slorer of Morgan Stanley released a report saying he expected a "short-term spike in oil prices," on the back of rising demand in Asia, Dow Jones Newswires reported.
Slorer's logic could be dead on, but the fact remains that his prediction is still just that, a prediction. The market is shorn of actual market conditions, and is now just drifting on the breeze of speculation.
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