Oil Prices Rally on Bullish Forecast |
| TheStreet.com - Jul 5, 2011 |
Oil prices were rebounding after a bullish price forecast by Barclay's pushed them above their 200-day moving average and triggered a bout of technical buying.
West Texas Intermediate light sweet crude oil for August delivery was popping by $1.83 to $96.77 a barrel, after breaking above the 200-day moving average for the August contract at $96.18. The August Brent crude contract was up $1.34 to $113.11, though exhibiting a smaller percentage gain that the WTI.
"The market has been looking for this technical breakthrough," said Addison Armstrong, Tradition Energy's senior market research director, of algorithmic traders. "Once that level was triggered, we saw some good buying."
The analyst says this is the first time the August contract has traded above the 200-day moving average since Jun. 15.
Barclays analysts tell their clients that they have raised their 2012 Brent crude oil forecast by $10 to $115 a barrel and 2012 forecast for U.S. light sweet crude oil by $4 to $110, citing a reduction in spare capacity. The analysts say that their projection for Brent crude prices remain unchanged at $112 in 2011, but have cut their U.S. crude price forecast by $6 to $100.
Read Full Article from TheStreet.com
- Posted: 2011-07-05 13:07:50
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