Comments on: Get a grip Darling – Northern Rock and interest rates need attention http://johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 09 Feb 2012 20:05:58 +0000 hourly 1 By: lender estate mortga http://johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-648 lender estate mortga Thu, 13 Dec 2007 07:56:22 +0000 http://www.johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-648 mortgage buy lender <a href="http://mortgagelender.dai.pl" rel="nofollow">lender bank mortgage</a> mortgage buy lender lender bank mortgage

]]> By: Steven_L http://johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-647 Steven_L Wed, 05 Dec 2007 01:58:12 +0000 http://www.johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-647 "At an oil seminar yesterday I learned that barring a major disaster in one of the big oil producing areas experts see no great problem with supply and demand next year." (JR) I've never been to an oil seminar. However back in summer 2006 I observed that oil prices seemed to react to geopolitical instability that did not directly affect major oil producers. The $78 peak during the Hezbollah/Israel conflict was said to be cause by speculation due to the aforemetioned conflict and North Korea launching rockets into the Sea of Japan. I appreciate the inflationary pressures any be different now with the credit crunch and tighter monetary policy, but some commentators believe there will eventually come a point (if opil continues to become more expensive) where rising oil prices increase the demand for money to an extent which causes stagflation. I can see the logic in this too. Personally I believe oil prices will back off again now for the immediate future and a January rate cut is on the cards. Howver in terms of oil prices I think that the nature of the way in which commodities are traded means that geopolitical events that are not directly related to major oil producers can cause an increase in demand for futures contracts. I find it amusing that some Western commentators blame Saudi production for oil prices whilst the Saudis blame Western speculation, when it is quite cleary a combination of both factors. "At an oil seminar yesterday I learned that barring a major disaster in one of the big oil producing areas experts see no great problem with supply and demand next year." (JR)

I've never been to an oil seminar. However back in summer 2006 I observed that oil prices seemed to react to geopolitical instability that did not directly affect major oil producers. The $78 peak during the Hezbollah/Israel conflict was said to be cause by speculation due to the aforemetioned conflict and North Korea launching rockets into the Sea of Japan.

I appreciate the inflationary pressures any be different now with the credit crunch and tighter monetary policy, but some commentators believe there will eventually come a point (if opil continues to become more expensive) where rising oil prices increase the demand for money to an extent which causes stagflation. I can see the logic in this too.

Personally I believe oil prices will back off again now for the immediate future and a January rate cut is on the cards. Howver in terms of oil prices I think that the nature of the way in which commodities are traded means that geopolitical events that are not directly related to major oil producers can cause an increase in demand for futures contracts.

I find it amusing that some Western commentators blame Saudi production for oil prices whilst the Saudis blame Western speculation, when it is quite cleary a combination of both factors.

]]> By: Tony Makara http://johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-646 Tony Makara Tue, 04 Dec 2007 19:21:59 +0000 http://www.johnredwoodsdiary.com/2007/12/04/get-a-grip-darling-northern-rock-and-interest-rates-need-attention/#comment-646 Interesting analysis. I'm looking forward to seeing the Redwood response to the Monetary Policy Committee tomorrow. Interesting analysis. I'm looking forward to seeing the Redwood response to the Monetary Policy Committee tomorrow.

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