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Is Oil a Safe Haven?

CNBC reports that "the U.S.—and the global economy—may have a new safe haven asset: the growing American oil bounty."  

"The sociopolitical upheaval in places like Iraq, Libya and Venezuela has kept oil prices propped up at more than $100 per barrel, underscoring the unstable nature of many oil-producing nations. By contrast, U.S. oil supplies—close to generating 9 million barrels of oil per day—are expanding, and far more secure than most of those abroad. Simultaneously, the U.S. shale boom has become a draw for international capital."  

"To be sure, gold, the dollar and U.S. Treasurys remain the premier safety assets during times of global distress. Meanwhile, oil market dynamics are overwhelmingly driven by supply and demand that place a 'fear premium' on internationally priced Brent crude, and which drag on prices when turbulence abates."

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