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Oil Over $90.00 A Barrel And Gasoline At 52 Week Highs

|Includes: The United States Oil ETF, LP (USO)

 This morning spot crude for January delivery is trading above $90.00 barrel. The high oil prices come as the United States and Europe reach very cold temperatures at the start of the winter season. Oil has a tendency to also increase in price before the Christmas and New Years holidays. This morning the United States Oil Fund(NYSE:USO) is trading higher by 0.19 to $38.48. The popular ETF will have minor resistance around the $38.75 level and much more resistance at the $40.00 level.

The United States Gasoline Fund(NYSE:UGA) is trading at a new 52 week high this morning. The UGA is trading higher by 0.37 cents to $41.62. The next resistance area for the UGA on the daily chart will be around $42.00. It is important to note that high gasoline prices are a direct tax on the U.S. consumer. At this time the UGA chart remains in a strong uptrend on the charts.

In 2008, it was high oil prices that were really the final straw that broke the camels back in the stock market. That price in 2008 was $147.00 a barrel. The current price of crude is still a long way off from that old high level. However, eventually high oil and high commodity prices will hurt the important U.S. consumer. Currently, the Federal Reserve Bank is saying that inflation is low and under control.

Nicholas Santiago
Chief Market Strategist