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World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00

Posted by Adrian on July 11, 2008

World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00

Supply issues and geopolitical tensions will inevitably send oil into a high price range. But still the oil market is a volatile market, it has been reported that Oil is now heading into overbought territory. Related commentary is that a correction in the oil price could be seen at some point in 2008 and we may see oil from it’s highs, back down to $100.00; although this would be a short term move.

At this point I cannot see any substantial correction in the oil price, with continuing weak US dollar and a potential global ‘buy up’ of oil (countries hording oil), the oil price will continue upward.

A dramatic increase in the oil price is on the cards, with Israel poised to strike Iran over Nuclear and missile developments ( Iranian medium range missiles tested recently). Personally I see a military strike on Iran as imminent, it could not be ruled out that strike could occur as early as late July 2008 or early August 2008. The markets have factored this in, with oil going from lows of 135 and then back to 141.

On a one day chart Oil is currently trading above the resistance (broken out) of 140.37, it is trading comfortable in the trading range of 146 and 135. Current oil price 141/142.

Note that oil is trading above the 50 Moving Average of 130, the 100 M.A of 119 and the 200 M.A of 105.

Take profit options at 146 and 150 – oil moving straight into the 150 range if there is a strike on Iran by Israel

refer to graph, please click on image for larger version.

*please note morbius glass does not give investment advice. The following information is for reference only. Trade at your own risk.

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3 Responses to “World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00”

  1. […] markets have shown incredible growth on the back of demand issues. Namely oil, as mentioned in World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00, oil has now trading range of 136 and 142 (refer to graph). Note recent sell of of oil, now 137 – […]

  2. Chris said

    Interesting article!
    Like to read more about that.

  3. […] it seems all but inevitable that Israel will launch an aerial attack against Iran, as mentioned in World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00 this could be factored in either at the end of Brown’s ‘veiled threat’ deadline […]

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