Crude Oil: Bullish & Bearish Case

Posted on

Bullish: Crude will move up due to quantitative easing (QE 2), which will depress the U.S. dollar and thereby increase the cost of commodities like oil.

Bearish: Inventory is comfortable, supply is ample relative to weak demand due to a weak economy.  Interesting though, is that one of the bearish cases for oil (shift away from heating oil to more natural gas), is a bullish pull for natural gas, as more natural gas is expected to replace petroleum based energy.

Here is a link to an article that expands on the bull and bear case for crude oil.

http://www.insidefutures.com/article/179618/Crude%20Oil:%20the%20Case%20for%20the%20Bulls,%20and%20the%20Bears.html