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Oil market is talking itself into demand destruction

The oil market is talking itself into another bout of demand destruction

TAKE a forecast for global economic growth and punch it into your calculator. Then take your pencil and draw a line starting at the bottom left of your page and ending somewhere near the top right-hand corner. See how easy it is to predict crude prices? That's about the shape of the game being played by Wall Street's investment firms, says Stephen Schork, an influential market commentator and editor of the Schork Report newsletter. Few forecasts account for another bout of demand destruction, he says, the inevitable outcome of spiking oil prices. "A bunch of equity guys looking into the commodity market," is how he describes the horde of analysts now predicting more inflation in oil markets

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