‘Smart Trade Group’– [Oil Trading Closes Above $62]

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New York, USA, 24/5/09- ‘Smart Trade Group’ says oil prices could jeopardize recovery in US.

“Smart Trade Group” sources say that the Asian-based boutique broker is convinced that the current surge in oil prices has further to run.

Their reasoning apparently centers on the swing to supply-side concerns from what they see as an “irrational obsession” with the demand destruction that saw prices dip to as low as $35 a barrel.

“Smart Trade Group” remains convinced that a rosier outlook for emerging economies is underpinning the bullish tone in the oil market. This is reinforced by recent evidence suggesting that China’s economy is slowly recovering from its year-long slowdown and also by last week’s victory for the pro-economic reform Congress party in India’s general elections.

Between them, these two nations have one-third of the world’s population and demand for resources like crude oil is likely to increase.

The “Smart Trade Group” source added that this combined with a steep decline in oil company exploration expenditure would see prices rise further at a time that both the US and the UK are debasing the value of their currencies with quantitative easing measures. The inflationary pressures of higher oil prices could force their central banks to raise interest rates at an inconvenient juncture in their recovery.