Crude Oil Price Predictions - Oil Price Forecast 2009 : Bad Credit Advisor

Crude Oil Price Predictions - Oil Price Forecast 2009

To give an intelligent crude oil price forecast for 2009, one no need to make off-the-ceiling predictions but just be a realist. Last week we made a prediction that crude oil will go up and it did. It was easy to do just by looking at the oil price chart - the prices have been hovering around $70 for quite a while, something had to change sooner than later and it did. Based on this past week' indication, we're now encouraged to make a longer term price predictions for the rest of 2009 and into 2010. We forecast it as 'Up' for 2009 and possibly 'Down' for 2010. We refuse to speculate what price levels can be reached though, because of the unprecedented events that may occur in the very near future. It'll be volatile but we believe the overall forecast should be Up for 2009 because of these 3 main reasons:
- the recovering US economy demands more crude oil thus driving prices up.
- the weakening US dollar will remain weak in 2009 and this will provide support for the current price levels of crude oil.
- the war in Iran may began as early as this year end. The Obama administration has done everything possible for this to happen, or in other words, they've failed to do anything to prevent it.

There are other variables that will most likely affect the price of oil in positive direction... like the potential sell-off in the stock market around this December that will drag the US dollar down with it, or like the renewed bull market in commodities.
Based on our predictions, the oil price can easily reach its peak by this year end and then, depending on how long the war will last and how damaging it'll be to the US economy, the sell-off on profit taking will began at some point in 2010. This concludes our price forecast for 2009-2010.