WTI 24 Mar 2011
Having finally broken out of its long sideways consolidation the question now is just how far daily oil prices are likely to rise if and when they manage to break through the March 7th top at 106. One of the most straightforward methods would be to look at the usd index which continues to bearish and if it is unable to hold the key 75 level then we can expect all commodities, including to rise accordingly. So far my own calculations show that the first target for daily oil prices would be in the $113 per barrel region, followed thereafter with a move towards $127 per barrel.
The key geo political issue for crude oil is not Libya, but the problems with Bahrain and Saudi Arabia which, so far, have remained somewhat overshadowed by the crisis in Libya and the Japanese earthquake.
