The Energy Space
Energy Price Outlook
Oil prices may continue their gradual uptrend in the near-term, as the Fed's announcement of new quantitative ease will create a favorable environment for investment in commodities. Support will also come from the recent events outside U.S. embassies in Egypt, Libya, and Yemen. Background support will be offered by Tuesday's EIA report in which global demand estimates were raised, while background pressure will come from ongoing chatter about an SPR release, comments from Saudi's al-Naimi, and slowing growth in China. We were a bit surprised at the strength of the market yesterday, as we thought that much of the QE3 risk had been discounted. Give the rally in stocks and the weakness in the dollar, however, it would appear that the oil market can continue up toward the $100+/bbl resistance level over the next week or two. We'd be buyers on weakness with a target at $100/bbl....2124 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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