Some may wonder why Oil Price continue its ascend yet signs are still of weak (rather than strong) recovery in US & Europe (just look at the Non-Farm numbers on Friday – very disappointing to say the least).

To put this phenomenon in context all you have to do is look at Zimbabwe.  Last year Zim, had the best performing stock market. Nevertheless, its currency was being continually devalued by staggering inflation (+10,000%) and a Government that could not print currency notes (with higher denominations) fast enough. All investors can do is invest in something as the value of their Zim Dollar keeps deprecating.

Similarly (though not on the same scale – well not yet), the prospect of weak dollar weighed down by ever-larger US deficit will only propel investors (in similar fashion to Zim) to pile in to real assets, like Oil.