Oil looks set to hit $100/brl., the Iranians have hinted that this would not be a bad thing. Sanctions imposed on Iran could back fire badly if the world economy hits an oil led recession. Money markets are looking to move cash out of dollars (which appears to be getting weaker each day) and moving into gold (inflationary pressures) and oil commodity drivers.

Two ways in which oil prices will fall, better news on inventory stocks in the US but this looks unlikely but the US must put new curbs on oil usage, or they will create a recession. Or supplies must improve, Opec may increase production in December but the likelihood is that this is playing into Iran and Venezuela as they become the marginal setting oil price rather than the Opec countries.

Finally, Powerisk predicts that November 13th will be the day we see oil prices peak at $100, as players look to push the fundamental market to these highs so that options can be exercised. Commodity prices tend towards options strikes.