In my post last March 4 about WTI crude oil (please see it here), I mentioned that its price could reach 110.00 US Dollar per barrel. Well, that is still pretty much a go at least from the technical point of view.
As you can see from its 4-hour chart above, WTI crude oil has risen after marking a low of $96.18 and then breaking free from a descending channel shortly after. At present, the price of global crude oil is trading at around $105.57. With it exchanging just above its short term uptrend line, a rebound in prices could be seen soon unless of it falls below the said uptrend line support. In any case, there could be some selling pressure at its previous high at $106.94 but a successful move past it could it it to its next stage at $110.00. On the flip side, a break below the uptrend line could send it lower towards a support at $103.50.
On the fundamental / political side, the tension in Libya has been pushing the prices of oil higher. With the US, France, UK and other countries teaming up in bombing Muammar Gaddafi’s forces and the later still not giving up, risk aversion could remain. Until peace in Libya is restored and a new government is formed, the price of oil could continue to rise.