Crude real price zone is 98 to 102.50.
When it was trading around 98,99, OPEC was expecting around 100 $ which it look at as a fair price.
Anything above it , good profit for them 102.50, may be its top price.
Speculators on grounds of Libya, Ukraine bet on, raised the price by 2 % more but couldnt sustain there.
This 102.50 -104.50 zone is artificial / rigged price zone of crude.
I personally think crude real price should be around 100.25, anything below and above 1% acceptable.
I mean to say between 99.25-101.25, crude's price of sideways movement and real price.
Now the price at 102.85 is still at the bottom of the extension zone, shows speculators still look for some upside.As there is no buying momentum at higher levels,prices may not sustain above 103 and has to find its real price in this june contract itself.
When it was trading around 98,99, OPEC was expecting around 100 $ which it look at as a fair price.
Anything above it , good profit for them 102.50, may be its top price.
Speculators on grounds of Libya, Ukraine bet on, raised the price by 2 % more but couldnt sustain there.
This 102.50 -104.50 zone is artificial / rigged price zone of crude.
I personally think crude real price should be around 100.25, anything below and above 1% acceptable.
I mean to say between 99.25-101.25, crude's price of sideways movement and real price.
Now the price at 102.85 is still at the bottom of the extension zone, shows speculators still look for some upside.As there is no buying momentum at higher levels,prices may not sustain above 103 and has to find its real price in this june contract itself.
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