Commodities
Carlyle’s Currie Sees Risk of Oil-Price Spike After ‘Carry Trade’
- $100 billion of capital diverted from oil to US money markets
- Falling US interest rates can bring capital back to oil market
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Oil prices face increased risk of a spike following a “carry trade” that has diverted much-needed capital from the market, according to veteran commodities analyst Jeff Currie.
High interest rates have spurred hedge funds and physical oil players to slash up to $100 billion in futures positions and crude inventories in favor of US money markets, said Currie, chief strategy officer of energy pathways at Carlyle Group.