New York, NY (PressExposure) April 20, 2010 -- "Mann International" analysts believe that the price of oil may be about to break out of its trading range to the upside after data revealed that there was a 2.2m barrel fall in US inventories over the past week.
The price is expected to reach $90 a barrel and the argument is lent weight by the fact that retail sales in the US came in better than expected.
"Mann International" has maintained its view that crude oil is in a bull market and that the price will continue to advance as the global economy recovers. Analysts at the firm cite the demand-side story will come to fore as the fledgling recoveries in developed economies become more sustainable but sound a note of caution insofar as the ability of high oil prices to threaten weaker rebounds by constraining corporate spending and planning. The oil price also has the power to push inflation higher unless the US dollar falls.
Technically, oil has been in a sideways trading pattern for 6 months but recent encouraging data from China, India and even the US on economic performance has seen the price mounting regular assaults on the upper limits of the trading range.
"Mann International" says that it still advises clients to go long oil majors and explorers. http://www.marketwatch.com/story/oil-futures-drop-to-three-week-low-under-82-2010-04-19?dist=afterbell