Concerns over the Eurozone debt crisis has investors seeking comfort in safe havens like commodities. Asset classes like gold continue to take direction from which way the dollar swings. Crude oil prices continue to trade with a positive bias amid concerns in the Middle East.
Even though political worries persist, Peter Hickson, Global Head of Commodity Research at UBS finds that the crude market is a safe bet because at some stage these issues will get addressed. Below is an edited transcript. Watch the accompanying video for more. Q: What is your call on what has been happening on the crude market? What is the near-term range for that market?
A: The crude market is clearly the best commodity market out there at the moment. It is just travelling that way on the basis of concerns about supply in Iran and also in the general Middle East area, it has to at some stage come back but at this stage its really concern and political risk associated with Iran which is holding it up.
Another fact in this market is the concerns in Europe and the flight of capital from Europe towards US dollar denominated markets and the very liquid US dollar market maybe a place where people can park their money in these times of uncertainty. It
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