Now that the psychological barrier has been broken this is a commodity that can go nowhere but up. Here are some reasons why I think that is true.

* The price of oil is affected by more than just demand for energy. We can’t control geopolitical issues and things like assassinations in Pakistan and the Iraq war will keep traders on edge.
* Demand is still a big factor and demand will continue to increase.
* Clean technologies are being developed but it is going to take time to bring things like mass solar and electric only vehicles to critical mass.

These are just a few reasons why I think that the price of crude oil will rise before it falls. I do think that the price will fall in the long run because the three situations I mentioned above can and will turn around.

In the short run we will see higher gas prices that will follow along with the increased oil prices and this is where the real difference will be made. If people see the cost of energy every day of the week it will continue to be on their minds. And when it is on people’s minds it becomes an important issue. This makes people change their consumption habits. And it makes people put pressure on their legislators to change things.

I’ll keep watching the industry news daily and report here to let you know how the tone changes.