On the daily time frame, we can see an up trending channel on the crude oil chart. There is a high possibility that this up trend will continue all the way to $90. Brace yourself for higher petrol prices guys on top of the ERP rates which is also going up here in Singapore. The last time I heard, its going to the $4 price region. haha. Well, what can we do? We are living in a country with a developed economy but not developed economy wages.
Anyway, lets get back to my take on the price of oil. In the long term, oil can go all the way to $150 beating the last high around the $140s region.(How I wish I could have an oil storage tank somewhere to keep petrol before this price rise. Hmm… Maybe we should hedge ourselves by buying oil futures. :p )
A correction in the oil price usually happens when it has just breached the round numbers, I notice. So, watch out for oil correction when it hits $91 to $92. Lets see whether the same thing happens this time around.
To your success!
Singapore Forex Traders’ Blog