NEW YORK ( TheStreet) -- If the U.S. does indeed default on its debt or suffer a credit rating downgrade, oil prices could rally on ensuing Federal Reserve and investment diversification actions, analysts agree.In either of those cases, "you're going to see the Fed react to that very swiftly and aggressively," says PFGBest senior energy analyst Phil Flynn. "Initially everyone will freak out and say 'oh my gosh ... demand destruction' " in the world's No. 1 oil-consuming nation, but then reverse their views upon another round of government stimulus or quantitative easing III, which would bring an influx of hot, speculative money into the commodity markets, Flynn explains.
Oil Prices May Rally on a U.S. Default
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