Crude surged again to a higher record yesterday as the dollar's freefall is still the cyclic wheel driving funds into commodities as opportunities of gains are now strong especially with a US recession and highly volatile equities they are now seen safer and promising higher returns; despite the fact that fundamentally oil is not provided with much support yet investors' sentiment and seeing prices are on the rise the longs of crude are leading the motion at this stage.

Contracts for April delivery settled yesterday with a gain of 61 cents closing at $102.45 after surging to set the high of $103.95; investors are now dumping the dollar to buy commodities seemingly we can say it’s the new replacement for the yen funded transactions as the dollar keep getting less appealing by the second.

The final word will be heard from OPEC tomorrow on their output decision, meanwhile fears of cutting production by the organization have subdued as they are to keep it intact, nevertheless that calls were still to further enhancement of the capacity; surging oil prices are the predominant inflationary threat, and most importantly as all economies struggle high inflation the puzzle remains once more on the US as their recession might now divert at current rates to stagflation.

In Asian trading this morning crude was little changed trading well above $102 per barrel, as of 9 GMT the contract was up nearly 13 cents trading around 102.50s after opening at $102.35 setting the low of 10.200 and the high of $102.69 per barrel; the market seems to take a rest today from achieving new records yet still present upside potential and any change in the current sound environment for the day might ignite the upside momentum once more, as funds are still pouring into the market… 

Resistance102.78 103.35 104.10 104.81 105.37