Are higher oil prices on the horizon?
*The Wall Street Journal, by Hyun Young Lee, April 7, 2008:
"Crude-oil futures were trading more than $2 higher Monday, building
on gains from the end of last week, with the market vigilant for signs
of another surge higher.
The front-month May light, sweet crude contract on the New York Mercantile Exchange was up $2.36, or 2.2%, at $108.59 a barrel. Brent crude on the ICE futures exchange was $1.94 higher at $106.84 a barrel.
Technical factors pushed prices higher after the May contract broke a key resistance level around $106.50 a barrel, and it could be poised for 'one final leg up' above the previous all-time high of $111.80 a barrel, said Walter Zimmerman, vice president of United Energy, New Jersey.
If the contract manages to breach the first hurdle of $109 a barrel, the 'minimum and likely maximum upside target zone for a major multi-year peak becomes the $112 and $120 area,' Zimmerman said in a note.
The move higher comes despite the strengthening in the U.S. dollar, which has tended to result in a consequent weakening in crude prices. A weaker dollar has prompted investors to flock to oil and other commodities as a hedge against inflation, as well as sustaining the purchasing power of oil consumers using other currencies."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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