A declining dollar and stronger equities spell higher prices for oil. Consider investing in oil firms and refiners to ride the wave.
Cold weather's rolling in, and it's time to start cranking up the heaters. But don't use them too liberally--oil prices are poised to shoot upward as the temperature continues to drop.
Last week commenced with crude oil prices teetering at $80 per barrel, breaking away from the $75 summertime average. As of midday Friday, (Oct. 23), crude prices traded at $80.61 at the New York Mercantile Exchange (NYMEX), and according to the Energy Information Administration's Petroleum Navigator, the week delivered the highest prices since last fall.
Although analysts and traders alike worry the price might slip down again in the coming days, many remain bullish in the longer term.
Technical analyst Richard Ross, head of global technical strategy for Auerbach Grayson, asserts that the price of crude oil will trend upward to $85, then $90, settling in at as much as $103 per barrel within the next nine months. He notes that $103 represents a 61.8% retracement of the entire bear market decline in oil, and as such, serves as a vital statistical indicator for traders and analysts.
