Crude yet surged to hit an all time record high on Friday after the US dollar head south weakened by the labor report especially as the unemployment rate hit 5.5%. Meanwhile geopolitical factors had their toll as the everlasting tension among Iran and Israel is rising with war of words and threatens as Iran's Ahmadinejad warned to wipe Israel off the map while Israel says a hit to Iran's nuclear sites now seem inevitable.
Seemingly the balance among affecting supply and demand factors are ruling the commodity's price. While despite the slowdown of global demand now markets foresee even tighter supply to support it, that comes despite OPEC's assurance of the adequacy of market supply and no current materialization to geopolitical and Mother Nature concerns on supply especially as the hurricane season is on the door steps. Crude on Friday surged $10.75 ending the correction that provided strong momentum and building a new strong bullish wave setting the record high at $139.12 a barrel ending well high at $138.54 after rising from its bottom at $127.81 per barrel.
Speculative trading and investors' expectations are now a crucial impute to defining the crude market's trend. The basics of demand defining factors are in play now, where the global head of commodities search at Goldman Sachs said today that oil prices are projected to hit $150 a barrel this summer, reiterating what Morgan Stanly said on Friday, and that surely pushed prices to the upside since investors are to be keen to pressure the market with heavy buying in light of lucrative returns.
Since they already said that prices are likely to hit the $200 mark then the bullish wave is definitely to prevail after is subsided for a short while and with current crude prices Bernanke's fears of inflation are justified and a strong dollar policy is surely needed to tame the wild black oil beast.
Until the early European session oil was down 90 cents opening at $137.97 to set the high at $138.00 and dropping to set the low at $137.12 where currently its trading at $137.60s as the bullish wave is still in motion while the need for a correctional move prevails for crude to gather momentum after the heavy bullish rise seen on Friday.