Stronger oil prices predicted: $90 by Dec. 2010 and $100 by 4th...

Stronger oil prices predicted: $90 by Dec. 2010 and $100 by 4th Q, 2011:

"$US100 threat

``The key risk is that we are being too cautious and that the threat of $US100 a barrel oil that is implicit in our fourth- quarter 2011 oil forecast arrives much sooner than we expect, driven by not only a weak dollar, but also by rampant Chinese and emerging market demand'' and the rebuilding of French strategic stocks, Eagles said in the report.

Technical analysis by Lind-Waldock in Chicago shows that oil is poised to reach $US90 a barrel by the middle of December. The December contract has been trading in an uptrend, a pattern of higher peaks and higher valleys, since touching a low of $US75.10 on Sept. 23, Blake Robben, a strategist at Lind-Waldock, a division of MF Global Ltd., said in an interview.

``Since then, the market has made higher highs and higher lows,'' Robben said.

Oil volume on the Nymex was 319,943 contracts as of 2:33 p.m. in electronic trading in New York. Volume totaled 615,815 contracts yesterday, 12 per cent below the average of the past three months. Open interest was 1.4 million contracts"

http://www.smh.com.au/business/markets/oil-gains-on-strike-storm-concerns-20101023-16y8a.html