Non-stop unrest from Middle East and North Africa, and the rumors about Saudi Arabia sent crude oil price higher last week.
In addition to the external turmoil, there are two other reasons that helped the oil price go higher: inflation and the falling US$ dollar.
Oil price had broken its major resistance level 94.50 and will likely go back to its previous peak around the 140 area.
Now the 94.50 level turns into the first major support level and stop loss area for the buying side. As long as the 98 level holds up, the uptrend is intact and 110 area will be the next target.
We may see some pullback movement this week. After the pullback is done, oil price should move back up as long as the external situation — i.e. trouble, turmoil and strife — stays the same.
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OIL Daily chart
