Get Ready for $100 Oil: Pro

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Crude oil is rising to a nine-month high on Monday. So what's next?

Several developments have recently provided a tailwind to crude prices, even in the face of the ongoing bearish story for oil, which has been the tremendous amount of supply.

Unrest in Syria has reminded markets that there is always the threat of the sort of headline risk that can make shorts very uncomfortable.

(Read More: Oil Hits 9-Month High As Syria Tensions Escalate)

On top of that, the economic data have been strong. The New York Fed's "Empire State" index, measuring the growth of the New York state manufacturing sector, came in better than expected. Furthermore, the National Association of Home Builders survey showed a great deal of confidence on the part of home builders. These two datapoints have convinced the markets that the economic condition is better than we thought, but not good enough to make us anticipate a Federal Reserve tapering of bond buying anytime soon.

As long as the economic numbers are mildly strong, crude should continue its path higher. A settle above $98 in August crude suggest a continued rally up to an objective of $100. Meanwhile, a settlement back below $96.50 would nullify the positive technical picture.

(Read More: $100 a Barrel for US Oil Looms Again)

Jim Iuorio is the managing director of TJM Institutional Services. Follow him on Twitter @JimIuorio.

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