Home » Daily Oil Prices » Daily Crude Oil Prices Break Higher

Daily Crude Oil Prices Break Higher

oil prices

WTI Chart 4 Nov 2010

The long awaited breakout from the recent pennant formation for daily crude oil prices finally arrived this week aided and abetted by the FOMC statement yesterday with daily oil prices surging higher, as expected and as we have been forecasting for some time.  In today’s oil trading session the upwards momentum has continued taking oil prices beyond the $86 per barrel price point, to trade at $86.66 at time of writing.  However, this breakout can only be considered to be complete once oil prices have cleared the $87.14 high of April this year which seems increasingly likely given the chronic weakness of the US dollar as it looks set to fall for some time to come.   Once oil prices clear this level, this will provide the requisite platform for a sustained rally, and as such we should see a longer term trend develop for the commodity as we move beyond $90 per barrel and on towards the inevitable $100 per barrel in due course.  The 9 day moving average continues to provide excellent support to the recent move higher and with the 40 day average providing longer term and deeper support, the outlook remains firmly positive for crude oil prices which have also been helped higher this week by the Saudi Oil Minister’s comments who suggested that OPEC would be comfortable with oil in the $80 to $90 per barrel region.

Oil hits six month high as dollar slides