At the start of 2014, investment managers thought oil prices were due to fall, says John Authers in the Financial Times. Prices had been stable for several years, hovering around $110 a barrel (for Brent crude). But shale oil and gas from the US was entering the equation, while tension in the Middle East was easing, thanks to improving relations with Iran. It all pointed to higher supplies in the future, and therefore lower prices.
So much for all that. Oil has jumped to a nine-month high of $114 due to the unforeseen insurrection in Iraq by Islamist fighters. The [...]
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