Oil has had a very turbulent period throughout 2012. The main reason for the sharp drop in the price of oil over the past number of months has been the poor global economic outlook. However, with expectations high that both the FED and ECB are going to act to address the issues facing the global economy the recent gains in the oil price are now sustainable and can be built upon. Therefore, it makes sense to go long oil at these current levels with time frame of around 3 months.
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