The lack of oil investment over the last decade which has long-term sustainability has created a perfect storm scenario whereby the Oil Market is on the verge of a major breakout to the upside. 

Expect a move higher over the next six months, and $100 a barrel of oil by next July, if not earlier. The next move will include taking out the previous $147 a barrel high established in the BRIC-inspired trading environment and ultimately test the $200 a barrel mark sometime over the next five years. It is possible that circumstances delay the inevitable by a couple of years, but by seven years at the most, there will be hearings once again in Washington looking for culprits when the oil market goes parabolic, and consumers become thoroughly outraged once again. Of course, this will be the result of failed public policies, and an underappreciation of the concept regarding scalability when it comes to energy markets.  

In this video we examine the oil market, checking in on the technicals regarding multiple time frames, and believe that ultimately oil prices are set to rise meaningfully over the next five years.