Tags: Hyman | oil | 140 | demand

Sean Hyman: Oil Set for Run to $140

By Dan Weil   |   Tuesday, 25 Feb 2014 11:00 AM

West Texas Intermediate oil prices climbed to a four-month high above $103 a barrel last week, and Sean Hyman, editor of Newsmax's Ultimate Wealth Report newsletter and a Moneynews.com contributor, thinks the rally will continue.

Nasty weather in much of the United States and turmoil in oil exporting nations such as Venezuela have helped boost prices. April crude oil futures traded at $101.70 on the Nymex Tuesday morning.

"Oil has been consolidating for several years in a sideways pattern, and I believe that global demand is picking up. That's going to shoot it through the top of that range," Hyman tells CNBC.

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"Once it finally does, we will see it hit $140 faster than a lot of people's heads can spin," he predicts. That level represents a 38 percent increase from Tuesday morning's reading.

Hyman sees oil trading at $110 to $113 in the next 30 to 90 days.

In addition to rising global demand, a bullish chart pattern and Libya's 50-percent drop in oil output will boost crude prices, Hyman explains.

Editor’s Note:
38 Trades That Could Turn $1,000 Into $49,000

As for demand, "the IAE [International Energy Agency] is talking about more oil demand coming on board," he adds.

Oil slid Tuesday amid worry over China's declining renminbi.

"There's a lot occurring in China that is hard to get your hands around," Bill O'Grady, chief market strategist at Confluence Investment Management, tells Bloomberg.

"There's been an injection of caution into all the markets. The S&P 500 reached a record yesterday, but it didn't hold."

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000

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