Oil rises as dollar falls on Europe rate comments

Oil prices rose back to $125 a barrel Thursday after the dollar fell in response to comments by European Central Bank President Jean-Claude Trichet suggesting the bank could raise interest rates. At the pump, meanwhile, gas prices rose to a new record near $3.99, and are likely to hit $4 soon.

Light, sweet crude for July delivery rose $2.75 to $125.05 on the New York Mercantile Exchange after falling more than $5 since last Friday.

Trichet spoke after the ECB left a key interest rate unchanged amid concerns about inflation. While Trichet said a change in rates was not a certainty, he said some of the bank's governors favor an increase.

I had done a back-testing on oil to find the best indicator for oil few weeks back, result of the back-testing here.

And the indicator has accurated predicted the buy signal for oil, see here.

On 4th June, I had bought 1 lot of super mini oil contract at 123.58. Details here.

Current price at US$127.93
Unrealised gain: US$435
Raises my stop to US$124 (in the worst senario, there will still be some profits)
Raises my target level to US$135
1 pt represents US$100