Are higher oil prices on the horizon?
"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."