(eToro Blog) In the wake of Japan's near nuclear meltdown following the March earthquake and tsunami which hit the regions, the German government has decided that the closures of seven of the country's oldest nuclear reactors will be permanent, and they intend to eventually close all of Germany's power plants. In Switzerland, a similar sentiment is being expressed by the government.

Industry experts already expect that demand for oil is likely to grow and prices to climb, as production declines and spare capacity is reduced. Considering that that analysis was done prior to the German announcement, it further portends a robust outlook for the oil market.

Going forward, in the absence of nuclear generated electricity, the German economy, the largest within the Eurozone and clearly the driver of the Eurozone's growth, will rely on oil to meet its power needs until such time as renewable energy sources are brought to bear. While analysts note that two countries are not a trend in the making, clearly that is something to consider for oil investors.

Especially since the recent Fukushima incident in Japan has heightened anti-nuclear tensions. Since the days of the Chernobyl nuclear accident more than two decades ago, anti-nuclear demonstrations have occurred across the globe, and the Fukushima incident merely pushed the unease to the fore. Not long ago in Germany, nearly a quarter of a million citizens protested against the country's use of nuclear power. Even the German Chancellor Angela Merkel has switched her position regarding nuclear power.

Oil Chart- Oil is currently trading above 100$ and supported around the 99 area. Oil is currently grearing up for yet another push with 102 as the nearest target.

Should other countries across the globe follow Germany's anti-nuclear lead that would certainly be a bullish sign for oil in the long term. On the eToro trading floor, sentiment among eToro's oil investors favors buying over selling by 5 buyers to 4 sellers.

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