Oil prices were always expected to be strong now and through the year, so the recent rally is likely to be continued. Indeed the price action suggests a continuation pattern rather than a top. We are likely to see further strong gains in the oil price as a symptom of strong global growth and increased demand says Clifford Bennett of Herston Economics. The recent crisis in the middle east is to Bennett a mere catalyst rather than the fundamental cause of the rally in oil. Subsequently on the basis of strong global growth equity markets, commodities, the Australian dollar and the Euro can all be expected to resume their major up-trend this week.
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