Description: Market veterans were expecting oil prices to reach $100 a barrel even before the political turmoil in the Middle East and North Africa hit the fan this year, and now that oilâ€™s reached triple digits, predicting prices is more daunting than ever.
Questions for discussion:Â
- Summarize the reasons for the rapid rise in oil prices recently.
- What are the arguments suggesting they may fall back, continue to rise, or stabilize?
- What is your view of oil prices over the next 12 months?
- How would you suggest an investor and financial manager ofÂ firm affected by oil prices approach this environment?
- How could derivatives play a role in this environment from an investorâ€™s and financial managerâ€™s point of view looking to hedge?