Several pundits attributed yesterday’s spike in oil prices to the recognition that the fight against ISIS in Iraq-Syria will be a long one.
As usual, the 30-second TV wonders missed the boat.
Of course, the ongoing chaos in the Middle East is certainly a factor. To the extent that oil traders begin to calculate its impact into their risk models, there will be an effect.
However, when it comes to what actually moves oil prices there are more important factors now in play.