Short-Medium Term Outlook for the "Black Gold"

What a wild ride it has been for oil over the past 1-2 years. From 75$/barrel up to $145/barrel back down to $35/barrel oil has been unprecendentally volatile. Oil has been greatly affected by the credit crisis, rapid dollar value fluctuations, inflation expectations, federal reserve policy, and the list goes on.

With all that has happened to oil recently one may ask:

• Where is it headed from here, and how can you possibly know?

Well the truth is that the shorter the time-frame the more volatile, and therefore, the harder it is to speculate on where the price will be in the short-term. However, I have proven my ability to accurately forecast oil prices in all time-frames with the combination of several analysis methods which include observing fundamental influences, technical (chart) analysis, and statistical/quantitative methods.

So were do we believe oil is headed in the short-medium term (several days to several months)?

With oil currently at $80/barrel (10/29/09) we can confidently say oil in general is headed up in both the short and medium term time frames from this point.

Short Term - Within several days we have an outlook for oil to hit $85/barrel.

Medium Term - Within several months we have an outlook for oil to hit $95-97/barrel.

Our next post will explain in depth one of the many ways you can take advantage of the coming rise in oil prices. However, one short quick tip we will give you now is to fill up at the gas pump today. In the short and medium term gasoline prices are sure to rise with oil.