Oil Production to reach prewar levels 2006

[lance]

NEW YORK - Iraqi Deputy Prime Minister Ahmad Chalabi said on Friday the OPEC member could return its oil exports to pre-war levels by mid 2006.

http://www.almendhar.com/english_7613/news.aspx

"So goes the oil, so goes the dinar" Lance

[ramis]

Great to hear that, but practically there is no movement at all. I think if nothing happens after the elections then it might be a very very long term investment.

I firmly believe that dinar should be released, it is bound to creep up gradually with improvement in economy, though it might slip initially:D

[lance]

Ramis, You are correct they are holding the dinar at its current level with this defacto peg. I believe this is creating an artificial support level in the 1460-1475 area, when this is lifted expect a rubber band effect. The market will find natural support and resistance levels. I expect a sudden movement in price in the dinar should it be released to the currency markets rather than pegged.