Crude oil forecast for 2009

After plunge about 70% since its recent peak at $147 due to deflation, Oil prices remains to need finding its bottom. It will take much time for crude oil to formulate a bottom that is expected will form a very volatile double or even triple bottom pattern.

Nadeem Walayat, A contributor to Market oracle, wrote, “However the long-term trend for crude oil remains higher, when I mean long-term I am looking at well beyond the next 12 months towards 5 to 10 years, when I would not be surprised given the peak oil fundamentals that we will actually be visiting the $200 crude targets that were loudly pronounced during mid 2008 as being imminent when crude oil was trading at $147. This scenarios should not be surprising given that the US Dollar bull market remains in tact that will continue to bear down on all commodities during 2009, but more on the dollar in my next (fourth) US Dollar bull market update.”

Click the images to enlarge
Charts courtesy of Market Oracle
ETFs/Stocks :

Ultra DJ-AIG Crude Oil ETF          UCO
UltraShort DJ-AIG Crude Oil ETF     SCO
ProShares Ultra Oil & Gas ETF       DIG
ProShares UltraShort Oil & Gas ETF  DUG

Related Posts :

Merril Lynch: Oil prices could fall to $25

Sources :

Market Oracle: Crude Oil Forecast 2009- Time to Buy?

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