On the last two months oil prices are up a whopping 25%, but is it possible that the oil rally is heading into it's final days? In the last couple of days oil prices have declined considerably from $113.46 to $105.31, raising a lot of questions as to what is oil's next move.
Analysts at Goldman & Sachs said that oil prices will soon brake through the support level of $105, sending oil prices into a downward spiral all the way back to $97 a barrel.
Personally, I couldn't be more thrill if such a marvel occurs. However commonsense shows me a different picture. It may be true that the oil's momentum may be waring off, but the price of oil remains closely attached to any resolution we see to the unrest at the middle east, which remains unrelenting. Libya has reached a stalemate, and upcoming presidential elections in Nigeria may very well determine the direction oil prices go next.
If analysts claim oil prices -despite all of this- will begin a downtrend and finally stabilize reaching levels not seen for three months, then I guess I must see it to believe it. In the mean while I'm walking to the supermarket.
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