February Crude Oil Trading

There's a huge amount of difference between oil and gold, the biggest being that crude is an industrial material. When trading oil futures, it pays to remember that they sit on top of an actual physical market. At the moment that market is saturated with the stuff. Inventories are bulging and what price will oil fetch when you can't store it anywhere? The fact is oil prices need to fall to redress the balance, either through reduced supply or increased demand. The current trend of higher prices and growing inventories is not sustainable.

Of course some geopolitical event in the Middle East or elsewhere may come to the rescue. But failing that the only way I can see oil heading for the stars is if the dollar collapses.