{"id":13384,"date":"2011-03-03T09:15:58","date_gmt":"2011-03-03T08:15:58","guid":{"rendered":"http:\/\/bontrade.org\/blog49\/13384\/wti-crude-oil-trading-over-101-prices-look-very-bullish\/"},"modified":"2011-03-03T09:15:58","modified_gmt":"2011-03-03T08:15:58","slug":"wti-crude-oil-trading-over-101-prices-look-very-bullish","status":"publish","type":"post","link":"https:\/\/bontrade.org\/blog49\/13384\/wti-crude-oil-trading-over-101-prices-look-very-bullish\/","title":{"rendered":"WTI crude oil trading over $101 prices look very bullish"},"content":{"rendered":"

WTI oil futures open today’s trading session back over the physiological $100 level for the first time since 2008, with prices looking bullish still, as Middle East concerns drag the WTI contract higher, with WTI and Brent spreads widening again to near record levels.<\/p>\n

Latest WTI Oil Price<\/strong><\/p>\n

US Light crude oil futures for April 2011 delivery was trading at $101.23 a barrel, 08.00 GMT this morning on the NYMEX. WTI traded back through $100 a barrel yesterday for the first time since 2008.<\/p>\n

The Age of Cheap Oil Is Over – IEA<\/strong><\/p>\n

Growing fears of an enduring oil crisis prompted huge volatility on investment markets yesterday, with shares in the world’s biggest oil producer, Saudi Arabia, slumping to a 22-month low \u2013 as a top energy official warned that the “age of cheap oil is over”.<\/p>\n

Last night’s swings came as Fatih Birol, the chief economist of the IEA (International Energy Agency) warned that the world may have to face up to the prospect of high oil prices over the long term. “The age of cheap oil is over, though policy action could bring lower international prices than would otherwise be the case,” he said.<\/p>\n

Mr Birol also struck a note of caution on Europe’s recovery prospects as the continent deals with increased fuel costs. “Europe is the weakest link in the chain of economic recovery,” he said. “75 percent of gas prices in Europe are linked to oil prices. In a few months gas prices are going to increase.”<\/p>\n

What Next for WTI Oil?<\/strong><\/p>\n

The situation in several Middle Eastern countries is the main driving factor for oil prices so far this year, with Brent oil’s contract surging, we expect that Brent oil will hit at least $150 a barrel by the summer, if not much sooner, and $200 oil in 2011 is a real possibility. So what about WTI oil prices?<\/p>\n

It’s difficult to imagine that WTI oil can lag so far behind Brent, even if the current spread widens between both contracts, WTI oil prices are set to trade much higher, and the middlle of March is our forecast for oil prices to take off again. Expect a oil trading situation similiar to the summer of 2008.<\/p>\n

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