If You Trade Once Only This Year Trade Oil

Submitted by Craig Strzelecki on 11 February, 2006 - 10:57

The word on the street from Barclays Capital is that the pot oil price is set to rise to US$70 per barrel. Thats the message oil specialists at Barclays Capital are reading in the current resilience of the far forward oil futures (within the framework of the recent sell-down pressure). The simple message is this: "if you could only trade once this year – and that time had to be now – then crude is a clear buy". However, there may be still some more downside to come. But then Barclays Capital are firm in dismissing speculation on any sustainable move below US$60 per barrel WTI (West Texas Intermediate, a type of crude oil commonly used as a price benchmark).