Oil Heading For US$90

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By Rudi Filapek-Vandyck

The crude oil futures market had recorded five consecutive days of small losses before heading higher once more in yesterday's session and that is, explains the team of technical analysts at Barclays Capital, a positive signal.

The analysts point out the five consecutive losses have carved out a so-called “bullish flag-like pattern” and thus further gains should now be expected.

The analysts predict Brent is now on its way to test US$88.15/bbl, then US$90/bbl. For West Texan Intermediate the analysts forecast a test of US$87.10/bbl shortly after which US$90/bbl should be the next target.

This week's trading has cemented trendline support at US$ 82.60/80/bbl argue the analysts.

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