Crude futures, is an oil trading bull market ahead?

12 April 2010 12 April 2010

BonTrade

Oil futures are back in the spotlight as prices near closer to the scary $100 mark, many investors are asking if there is an oil trading bull market ahead.

“I am in the bull camp,” said Christopher M. Mennis, President of New Wave Energy LLC. “Oil prices will breakout on positive economic data. Technically, the breakout has occurred already.”

“With the Federal Reserve allowing money to flow like water, the dollar should remain weak, and the Dow Jones should continue to press ahead into the future, both factors are pushing up the price of oil,” said Mike Sander of Sander Capital Advisors.

Gavin Wendt at Mine Life Pty said weekly US inventory levels were “short term factors” that didn’t reflect increasing oil demand in emerging economies while crude usage flattens in mature markets like North America and Europe.

“And the age old issue of oilfield decline and longer term supply side restrictions means $100 a barrel plus oil is once again not far off,” he warned.