Charts Predict: Oil Rally Set to Break $78

The recent surge in the price of oil looks set to continue and could push the cost of a barrel of crude toward $78 over the next few weeks, Chris Zwermann, global strategist at Zwermann Financial, told CNBC.

Charts: Oil Heading to $78
Charts: Oil Heading to $78   

“The big question now is can the world really stand higher oil price, higher interest rates and a weaker dollar?” Zwermann told CNBC.

The price of Nymex light sweet crude tanked from its peak above $147, hit last summer, down to a trough around $30 as the world economy stumbled into recession. Now oil has rebound to above $70 and is back to the level seen before the subprime crisis hit, Zwermann points out.

Zwermann expects oil to hit $79 in the near term, but thinks the ongoing recession could put that under threat.

- Watch the full interview with Chris Zwermann above.

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