Our weekly CNBC survey asks traders, analysts and strategists about their outlook for crude. Here are this week's results:
Overall sentiment: Bullish
Total Respondents: 14
- Bullish: 8
- Bearish: 5
- Neutral: 1
Key Bullish Factors:
- Oil is still considered cheap
- Weak dollar pushing up prices
- Gasoline stocks are down
Key Bearish Factors:
- Oil is looking expensive after recent rally
Mike Sander, Sander Capital Advisors
"Even if gasoline stocks went down, because of refineries seasonally cutting back to do maintenance of their operations, it still dropped and a drop in inventory for any reason causes the market to go up."
"Just like with the equities market, even if a large corporation has a 50% drop in revenue, as long as they beat very weak estimates the shares go up."
"If the Euro goes back up to $1.60, which all indicators are pointing to, oil will go much higher in price, say $100. With energy inventory being cut in the US, the dollar hitting new lows almost every day, and the stock market rallying to new highs it just seem inevitable for oil not to go up."
For now I am going to have to say, bullish on the price of oil, even though regional banks are still going broke, commercial loans are busting, and unemployment is not looking any better.'
Gavin Wendt, Independent Oil Analyst
'In my view oil prices are still cheap. I think we are going to see a push higher between now and the end of the year."
"I think the recent push out of the trading range you suggest is very significant and I would expect prices to now establish a range between $80 and $100 a barrel over the next few months.
"I think however prices will consolidate next week, so I don't expect any major price moves."
Victor Shum, Senior Principal, Purvin & Gertz
"Any longevity for the current price rally is highly suspect. The price push has conveniently been reconciled as due to further US dollar weakness and the pricing-in of market sentiment for a resumption of demand growth. There is a lack of fundamental support:
David Moore, Commonwealth Bank
"To my mind $80 is the price associated with a tight market, and the current market is not tight. So I think a correction is due, but timing is difficult."