Gulf States Oil Gamble Pays Off

Over the past few weeks, the price of Brent crude has spiked to $60 a barrel due to rising tensions in the Middle East and improving fundamentals for the oil market. As I reported last week, low oil prices and the growing global economy have helped push oil demand to a new all-time high. Meanwhile, the current level of demand growth — 1.6% — is 50 basis points higher than the long-term average of 1.1% recorded over the past two decades. [dalio] Oil inventories are also falling fast. At the beginning of October, OPEC Secretary General Mohammed Barkindo told reporters that during…