Oil Continues Its Upward Trend (Price)

Link here. Brent over $91, close to $92.

Light sweet crude, $88 and change.

OPEC happy with status quo.

Moody's ready to cut US "Aaa" credit rating.

Short term, the price of oil is tied closely to strength of the dollar.

Long term, the price of oil is more closely tied to perception of supply and demand. The de facto moratoria on drilling off-shore along the US west coast, the US east coast, the Gulf, and Alaska will eventually affect the perception regarding supply. Congressional concern about TransCanada's Keystone XL could also become a factor down the road.

We already know that demand for oil will increase in 2011.