Economist Gurwitz: Oil Prices Should Rise With Russia Sanctions

Monday, 28 Apr 2014 08:25 PM

By Joe Battaglia

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
With Russia threatening to retaliate for further economic sanctions by the U.S., the global energy markets should brace for more tensions, according to one economist.

Over the weekend, President Obama outlined, from his trip in the Philippines, new sanctions against high-technology exports and other wealthy allies of Vladimir Putin in an attempt to ratchet up pressure on the Russian president. The announcement triggered a spike in crude oil prices, which rose to a seven-week high of $110 per barrel from $108 per barrel in March.

In response, Deputy Foreign Minister Sergei Ryabkov vowed that Russia would respond. "We are certain that this response will have a painful effect on Washington," Rybakov said," the Guardian reports.

David Gurwitz, managing director of the Charles Nenner Research Center, told J.D. Hayworth and John Bachman on "America's Forum" on NewsmaxTV that while he couldn't pinpoint exactly what form that retaliation would take, history has shown the outcome will cause a further rise in oil prices.

"I can tell you cycles suggest what's going to happen with crude and with oil which might indicate a heightening of the tension," Gurwitz said. "We have a target of $122, which indicates — is the demand greater or will there be more strife that causes concern about that?"

Gurwitz said that by looking at the top to tops in any data series of stocks, bonds, commodities, and currencies over history, the CNRC is able to mathematically extrapolate what the news might be that causes a top and a bottom without actually factoring in the headlines.

"Let's go back to 2009," Gurwitz said. "Crude was very low after the tumultuous time in 2008. Everybody was hoping crude would go up, that would indicate a tremendous increase in demand. Now, if crude goes up, everyone is concerned that it's war. So that's part of how we look at things depending on what time and the spectrum of history you are, determines where people want things to go or not."

Story continues below video.



Along those lines, Gurwitz suggested that Russian response to these latest sanctions won't necessarily spark a selling spree by gold owners fearing a plummet in prices.

"I think the opposite," Gurwitz said. "The people who are in gold, I'll tell you, we have lots of clients all over the world and we suggested everyone get at it [selling] when gold was $1900 a couple years ago and said for the next few years, which is now, there have been just bounces including this last move from $1300 to $1400. We think that gold is very shortly, within the next month or two, hitting a long term bottom in cycles and will be going up.

"So, I think people won't be selling their gold now."

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

MSNBC's Lawrence O'Donnell Taking Extended Leave after Taxi Accident

Tuesday, 15 Apr 2014 06:56 AM

Cable news commentator Lawrence O'Donnell is taking a leave of several weeks from his job as host of the MSNBC program  . . .

Chairman of NJ Panel on Lane Closings Defends Role

Sunday, 02 Feb 2014 11:39 AM

The chairman of a New Jersey legislative committee looking into the role Gov. Chris Christie's administration played in  . . .

Democrat O’Malley's 'Better Off' Gaffe Explodes into GOP Talking Point

Monday, 03 Sep 2012 15:18 PM

Maryland Governor Martin O Malley sought today to clarify his remarks after Republicans seized on his answer to a questi . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved