Charts Predict: Oil Rally Set to Break $78

Thursday, 11 Jun 2009 | 9:14 AM ET

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
Oil prices could continue their recent rise toward $78 a barrel in the next few weeks, but questions remain over whether the world economy can sustain such levels, Chris Zwermann from Zwermann Financial told CNBC Thursday.

“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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