Traders who favor technical analysis -- a highly specialized cadre in Wall Street's Concrete Canyon -- are quick to point out the mirror aspects to key price levels, in this case a psychological level, the $100 oil price.

The oil market's recent, consecutive closes above $100 per barrel are a show of strength from a technical standpoint. That fact, combined with the mirror aspect -- or what was once psychological resistance at $100, is now psychological support at $100 -- means that oil may remain above $100 for a long time.

A $100 oil floor?

Further, traders are now talking about a "$100 floor" for the price of oil. You heard right -- $100 as a floor for oil's price, and it's not a comforting thought. Still, as technical analysts will note, it's a possibility that executives, economists and policy makers alike, not to mention typical citizens, will have to consider as a potential economic reality, moving forward.

Bearish view

Those who argue against the $100 floor price point to U.S. inventory statistics. Crude oil and related inventories have been rising for weeks. Further, gasoline demand has been flat year-over-year, and with a national unleaded regular gasoline price around $3.20 per gallon, there's a chance gasoline demand could actually fall this summer for the first time in more than 20 years. March 2007 U.S. gasoline consumption is already below March 2006 levels. Clearly, consumers are cutting back and the U.S. economy's sluggish growth is depressing energy demand further. Bears say that points to a substantial drop in oil's price -- perhaps well below $80 per barrel -- in the months ahead, which would demonstrate once and for all that oil's breach of $100 was Pyrrhic, bubblish, downright frothy, and hardly a floor.

Bullish view

Those who argue in favor of the $100 floor price say the U.S. market may be soft, but right now it's mostly about surging international demand for oil and a weak U.S dollar and economy. Strong economic growth in Asia, led by China and India, and in Latin America is driving a bull market in commodities, including a record price gain for the world's most vital commodity. These analysts say the demand is secular, global, and unlikely to be dampened by the U.S. economic slowdown. Further, there are few widely available substitutes for oil, although the bulls admit that may change in a year or so as alternative fuel development progresses. What's more, the falling dollar is forcing market participates to bid-up the price of oil, to both retain the commodity's purchasing power, and to enable it to serve as an inflation hedge. That points to an even higher price for oil and other commodities in the years ahead -- not merely in the months ahead -- demonstrating that oil's nine daily closes above $100 is substantive, legitimate, downright warranted, and a floor the world may one day look back at nostalgically as a time when oil was relatively cheap.

Oil Analysis: Oil's record price increase in the last six years -- oil is up about 350% since 2002 -- does display bubble characteristics. Still, until international demand growth slows and a host of geopolitical, and U.S. fiscal/monetary problems are solved, those arguing that $100 oil represents a floor price have a compelling case.

Reader question: What's your view on the price of oil? Does the $100 oil price represent a bubble? Or will we never see the likes of $50 oil, even $60 oil, again? And can producers and consumers do anything to lower the price of oil? Let us know what you think.