Oil Breaks the $90 Barrier - Is $100 Oil Next?

As crude oil breaks the $90 barrier one must seriously consider the next ceiling and psychologically important $100 per barrel might be next?

Frankly, in looking at the fundamentals, $100/bbl seems unsustainable - as indeed does $90/bbl. In essence, not much has really changed other than the US$ which is significantly weaker. Yes, there is some renewed tension in and around the Middle East and temporary disruptions in Mexico but is this really sufficient, against the supply/demand backdrop, to justify such prices? I for one think not. In fact, other than for the weakness of the US$, I think prices are already overblown and the bubble is more likely to burst. However, all eyes are on the US Federal Reserve to see if they cut US interest rates again. If they do, all bets are off.