Crude oil is trading around $104 this morning, in what remains a very volatile market. Prices are likely to remain elevated for sometime, says market forecaster Charles Nenner of the Charles Nenner Research Center.
The good news is oil prices aren't headed back to $147 per barrel, the record level reached in the summer of 2008. "I don't see oil price(s) taking off," like so many fear, he tells Aaron in this interview. In fact, Nenner predicts oil will top out at $107 per barrel by April.
Bullish on Exxon Mobil for the last year, Nenner says the world's largest oil producer still has room to run. He predicts the stock will peak above $100 per share.
As a whole, Nenner is cautious on commodities. His cycle work shows commodity prices peaking in the next few months. For those invested in gold and copper, he recommends taking profits.
While the upcoming weakness in commodities may translate into cheaper gas and food prices, it's nothing to cheer. The "economy will be weaker than expected" in the next few months, says Nenner.
And, by the way, Nenner still predicts a major war to come in 2012 or 2013. Whether the recent uprisings in the Middle East will spark this greater conflict, is unclear.