$150 Oil. When it May Happen Revealed

In 2008, Oil had one of the most spectacular run-ups and flame-outs of any asset class in the past decade. From a high of $155 to a low of $35, the oil markets are a dangerous place for people who use leverage or try to get to clever with their timing. However, one thing can be assured. Oil will continue to go up in price due to the growth of the emerging world. But the question is, when will oil make all new highs? And when will oil top the $150 a barrel price. It comes down to seasonality and the fall of the dollar.

The dollar plays a big role in oil price

Imagine the price of oil going up even if there is no real demand for the "black gold?" That is one of the bullish advantages oil has over its competitors. As the U.S. dollar falls, the price of all finite commodities will go up. And since oil can be seen as a quasi currency, you can see the rise, in price, of oil even if there is no increase in oil demand.

Seasonality plays a big role in the price of oil

Perhaps no other commodity has a more reliable and more powerful seasonal trend than oil. From February 25 to May 9, oil has risen over 90% of the time, in the past 30 years. You can set your clock to it. And it is in that time you can make your entry and exit point for oil. If oil is going to make a new high, it will most likely take place during the tail end of the seasonal strong period for oil.

When oil will surpass $150 a barrel

Oil is currently sitting at around the $100 level. And you could see oil rise up to the $115 level during May of 2011. Oil should continue to stay steady and build its base throughout the 2011 calendar year. However, it is 2012 when oil will shine. Look for oil to hit its $150 mark during May of 2012. But be careful. Many signs point to a market crash during the fall of 2012. That may take oil all the way down to $80 again. However, most crashes are followed by powerful recoveries. So you will be sure to see oil rise and rocket through $150 a barrel in May of 2013.

Oil Price predictions for the next Three years (per barrel)

• May 2011: $115
• September 2011: $110
• December 2011: $120
• May 2012: $150
• September 2012: $80
• December 2012: $100
• May 2013: $150
• September 2013: $160
• December 2013: $180