Prices are being pulled from pillar to post at the moment, which is all a consequence of a tight market and will continue as long as demand is so strong and supply is struggling to...

It really has been a momentum-driven push to $60 over the past week. We’ve seen funds really pile in hard in an effort to push it over (that level).

All these factors create apprehension in the market and reinforce the view that we’re on a knife’s edge in terms of supply and demand. The uncertainties heighten the risk premium applied to this market.

Fears that production will be cut at a time of relative tightness has pushed the price higher.

If high prices do continue much longer, they will certainly have a bite on GDP growth. At the moment, we are at the stage where prices are really driven by short-term factors that the market...