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Aden Forecast ". . .oil will likely continue to outperform gold as it has for a year now"

ReportEnergy
Date02/10/2010
Loaded Date02/11/2010
TitleEnergy: Oil Is King
Quote"Crude oil's future looks bright (or should we say bad for us consumers). It is the main source of energy in the world, and while alternative sources will grow over time, there is nothing to replace oil looking out to the years ahead. Oil is the bloodline of the world.

Using oil and natural gas as an example. . . .they both tend to move together on a major trend basis. But natural gas has not been as strong as oil over the last few years. Natural gas may eventually catch up, but for now other energy sources have taken a back seat and they're underperforming crude.

. . .the upside is open and oil has plenty of room to rise further before it reaches the high area that normally coincides with peaks in the oil price. Oil is also still low compared to gold. . .but it's on the rise suggesting that oil will likely continue to outperform gold as it has for a year now.

For now, oil is softening with the resource sector and it could stay under pressure a while longer. Watch $76 as crude is vulnerable below this level. But if it stays above $69, it will be stable and firm. The major trend will remain up even if oil declines to $61."