Light oil price touches $87 in trading, $100 oil soon?

Light oil futures are trading at highest levels since October 2008, touch $87 this morning, the question is, are oil prices going to hit $100 a barrel soon? A raft of latest US statistics has boosted confidence in the US economy and in turn boosted global oil prices, markets and commodities.

US analysts have predicted that speculators would send the oil prices towards $100 by the summer of 2010, but that it would then fall back, since there was no shortage of supply.

Tom Kloza, of the Oil Price Information Service, said traders had moved from showing a “legitimate reaction” to economic data to an “over reaction” and that movements in the crude oil price was more an indicator of optimism, or pessimism, about the recovery than a reflection of the cost of extraction or of oil supply and demand.

Barclays analysts expect oil prices to “flirt with $100 this year” anticipating an average price of about $140 by 2015.

Analysts at Bank of America see oil trading around $105 later in 2010 and believe that $150 isn’t far behind, a possible reality by 2014, thanks in part to increased demand from China and India.

What are the chances that oil prices will break through the $100 a barrel mark for 2010 and what’s in store for us if prices remain high?

In our recent article posted on 15th March 2010, link to the article below: Oil trading price predictions for 2010 to 2012 we believe that oil prices will eventually hit $100 this year.

“If you take a look at the good news going on in the world right now, it’s hard to see that oil prices will be lower than the current price per barrel and that isn’t going to change any time soon.”