New York, New York (PressExposure) September 27, 2009 -- "Mann International" are thought to believe that $80 a barrel crude oil is fairly priced given the plunging value of the US dollar in which its price is denominated.
The Asian-based boutique brokerage's analysts reason that oil producing nations have every right to expect a fair price for their product and, if the dollar's purchasing power continues to fall, the price could reach $100 before the end of 2009.
Commentators have expressed mounting concern that the rising price of oil could increase inflationary pressures in economies with weakening currencies at a time when their fragile recoveries can least afford to raise interest rates to combat rising prices.
The United States has seen its currency pounded on the foreign exchange markets as investors grow jittery about the outlook for inflation in what is the world's largest economy and still largest importer of crude oil.
"Mann International" is confident of the fundamentals for oil as Asian economies continue to recover from the global slowdown more quickly than their Western counterparts. The US currency has fallen consistently against those of its six most active trading partners as investor concerns mount that the US government is locked into its zero interest rate policy.
"Mann International" analysts suggest that the Obama administration and the Federal Reserve are in a catch 22 situation in being unable to raise interest rates while workers lose jobs and housing data continues to confound economists.
It is widely believed that the Fed will keep interest rates at their current low level until jobs are being created faster than they are being lost but "Mann International" feels that a sudden surge in inflation may see pressure increase on the Fed to raise rates.