Expect Crude Rally to Continue: Futures Pros
Brent crude futures for March were down 61 cents at $112.67 per barrel. The contract hit a three-month high of $113.84 on Friday.
(Read More: Brent Hovers Near Three Month Highs on Economy Hopes)
U.S. crude fell 25 cents to $95.63, steady after seven straight weekly gains, the longest such streak since 2009. The price of West Texas Intermediate, also known as Texas light sweet, has climbed some 11 percent over the past seven consecutive weeks. WTI has not experienced seven consecutive weeks of price increases since April 3, 2009, reports CNBC's Giovanny Moreano, when it rose roughly 40 percent.
If crude finishes up this week, it will be the best weekly streak since August 2004, when it posted eight weeks of gains, Moreano added.
Professional trader Anthony Grisanti said he has reasons to think crude prices will rise. To start, Grisanti said the technical indicators point upward, and oil has recently it's held its trend lines.
Crude might also push higher on improved economic data, Grisanti continued. Last week, jobless claims fell 37,000 to a seasonally adjusted 335,000, hitting a five-year low, and housing starts jumped at the fastest pace since June 2008. If the economy continues to gain steam, he thinks demand for crude will pick up.
Trader Jim Iuorio, managing director of TJM Institutional Services, agreed with Grisanti that the technicals and economic indicators are bullish.
"I do think that the rally can continue as the global story appears better than it has been in a while," Iuorio said from the floor of the Chicago Mercantile Exchange, noting that "the situation in Europe appears to have calmed" after it was announced last week that some European banks will soon repay the European Central Bank 137.2 billion euros ($183 billion) in 3-year loans ahead of schedule.
With oil closing off its highs, both Iuorio and Grisanti plan to go long crude futures.
Rich Ilczyszyn, founder and chief market strategist of iiTrader, is also somewhat bullish on crude. He pointed to another positive indicator for crude prices, however. Over the last 29 years, investors who bought WTI on January 28 and sold on April 15 had 24 winners and just 5 losers, he said. That's a success rate of roughly 82 percent.
"Obviously past performance is not indicative of future results," Ilczyszyn admitted. "But these stats, plus six consecutive weeks of funds "big money" adding to net-long positions, could give you a market bias."
To Ilczyszyn, if the stock market continues to rally, oil will likely follow suit.