Price spike, as in 2008, inevitably followed by downturn
Barring an unforeseen event, fundamental and technical factors are conspiring to send oil prices into a 2nd half tailspin. I called the price tops in the oil market in both 2008 and 2011, ahead of time and within a few weeks, and just like in 2008 (and similar to stock market moves) the oil price will plummet a lot faster than it rose. People still blame the 2008 economic crisis entirely on the housing bubble however many people were much more affected by $120 to $140 oil, which was a catalyst in the near global collapse.
This Summer and Autumn will see some support for oil in the $70-75 range (today's Nymex Crude is $92.84), if it closes below 70 during the Summer of 2011, it is likely headed for a late Autumn bottom in the 40-45 range, at which point oil will become a Buy again.
For now, Sell oil!
No comments:
Post a Comment