Strong demand from emerging economies like China, combined with supply disruptions, geo-political concerns, the weak US dollar and speculative demand amidst the US financial crisis have underpinned the movements in oil prices. Prices are anticipated to remain high in the months ahead.
One can imagine a situation, for example, where a particular class of investors is excluded from bail-in owing to national political economy concerns. Or a situation where larger countries with larger resolution funds are in a position to exclude more creditors than smaller countries. Investors will be forced to second-guess these issues.