Oil continued its march into record territory Tuesday, but should you jump in at these levels?
What’s driving oil higher?
It’s a combination of the weak dollar, surging global demand and speculation explains Addison Armstrong, Director Of Research At Tradition Energy on CNBC’s “Closing Bell.” All these factors are driving crude toward $120, but the weakness in the dollar is probably the largest component. A lot will depend what happens later in the month with the Fed.
If we were just trading on fundamentals where would price be?
I’d think somewhere between $75 - $85 a barrel, Armstrong replies. Remember we were at $86 in early February but then the Fed started cutting rates.
How are you playing it?
The trend is your friend, Addison replies. Every time there’s a pullback there’s a big wave of buying. I wouldn’t be short.