Will Crude make new highs in 07?

[Hobbs]

No doubt we are in for a volatile year in the crude oil market. With the recent pullback in crude prices, how much of a rally can we possibly expect?

[Anatole]

While some say that prices will continue to slide as a result of ample supply, I think we are in for a volatile year and a good chance of a strong upside for the following reasons:

- Raging conflict in the middle east
- OPEC's decision to reduce it's output by 1 million barrels a day
- Revolution in Nigeria
- Russia shutting down a major pipeline to Europe

Due to these factors, I don't see the price of crude oil dropping much further...

[Sahara Trader]

The record intraday high of $78.40 on July 14 2006 will be short lived in my opinion - the largest oil producers have agreed to cut back supply while US petroleum inventories have dropped in the forth quarter of last year.