WTI oil prices in 2011, most bet $100 plus oil is ahead

31 December 2010 31 December 2010

BonTrade

WTI oil prices are set to finish the year around $90 a barrel and 2011 looks bullish for crude oil prices, according to many analysts and investors.

Latest WTI Oil Price

US Light crude oil futures for February 2011 delivery was trading at $89.50 a barrel, 08.00 GMT this morning on the NYMEX.

Meanwhile, the ICE US Dollar Index, which measures the US dollar against a basket of six major world currencies, eased to 79.471 from its 79.515 level in late trading on Thursday.

Oil Prices in the Spring of 2011

In a live poll by the WSJ, nearly 50 percent of voters believe that oil prices in the spring of 2011 will be above $100 per barrel. See chart below:

WTI Oil Price Forecasts for 2011

2011 – A Record Breaking Year for Oil Prices?

US Light oil prices last hit the $100 mark in October 2008, after reaching an all time high of $147 in the summer of that year. That super spike in oil prices is thought to have been created thanks to oil price speculators. The million dollar question is will this happen again, and if so, is 2011 an oil bubble repeat of 2008?

Going Long on Oil and Commodities Next Year

With alot of uncertainty in currency markets, it’s looking like most traders will be going long on oil early in 2011 (betting that oil prices will rise) even though it seems that a new bubble maybe emerging in the market.