Description: The Amex Oil Index (XOI) is a price-weighted index designed to measure the performance of the oil industry through changes in the prices of a cross section of widely-held corporations involved in the exploration, production, and development of petroleum. The XOI Index was established with a benchmark value of 125.00 on August 27, 1984. Additional information on the ‘XOI’ can be obtained from the American Stock Exchanges product specification page (here.)

Recent Comments: posted January 16th, 2006. If the ‘XOI’ closes above 1,091.02 then the ‘XOI’ will have completed a cup pattern with a measured move to 1,269.41 Our opinion on the ‘XOI’ was discussed in greater detail in the January 16th edition of the Sterling Weekly. With respects to the price of Oil, I am expecting it to continue to move higher and test $69.82/barrel. If it closes above that level, then I am looking for an upper price target of $83.50/barrel.

Note: In case you are wondering about my track record with the price of oil in the past. In the March 7th, 2005 edition of the Sterling Weekly with oil in the mid $40/barrel range I forecast that oil would move to $64-$69/barrel. In the August 29th, 2005 edition of the Sterling Weekly following Hurricane Katrina I wrote that the price of Oil might “hit $70 barrel, but that should be about it.” I stand by what I’ve wrote and it is there for you to read.

Prior Articles and Comments:

January 25th, 2006: A Comprehensive Technical Analysis of the American Stock Exchange Oil Index ‘XOI’ Available to subscribers & trial subscribers (here)

January 16th, 2006: A look at the XOI in The Sterling Weekly. Available to all (here)

August 29th, 2005: Comments on the price of oil following Hurricane Katrina. (here)

March 7th, 2005: Comments on the price of oil. With oil in the mid $40’s I forecast a move to $64-$69/barrel which was reached 5 1/2 months later. Read it (here)