While the overall market fundamentals are weak and the euro zone crisis still far from over, global economies are seemingly in a state of flux.

In the meantime, the new, emerging crude frontiers too are impacting the global energy landscape with long-term consequences.

And to top it off, the recent geopolitical developments are pulling the energy world in opposite directions.

The escalating tension between West and Tehran would keep energy pundits on edge for a considerable period of time this year.

If the Strait of Hormuz is blocked, as Iran has been contemplating and threatening, or even if an attempt is made to do so and is thwarted by sheer force, it would have catastrophic impact on oil markets and indeed the state of global economy.

A major spike — even if for a short period of time — could not be ruled out.

And then on the other hand, the possibility of a recession in the EU is staring the global economies.

This uncertainty and the consequent slowdown in global growth could see commodity prices take a hit in the near term.

And oil is indeed the world's largest traded commodity.

And while these two, rather conflicting, events could send oil prices off the charts — in either direction — there are other specks of doubt hovering over the crude horizon.

Increasing supplies from Libya and Iraq are coming on line faster than many thought.

In the meantime, the US is slowly adapting to conservation possibilities — weakening the demand side of the global equation.

The Chinese dragon is also slowing down — one can't deny.

However, pundits seem divided. Some are painting a firmer market outlook.

A Bloomberg survey of 27 oil analysts indicates West Texas Intermediate oil may reach an average of $100 a barrel in 2012, topping the record high of $99.75 set in 2008.

The US benchmark is on course to average $95 a barrel this year.

Goldman Sachs Group, one of the most closely watched banks that in May 2008 projected the oil prices could climb to $200 a barrel, is now forecasting Brent crude to average $120 a barrel in 2012 and Nymex crude to average $112.50. Brent began 2011 at $95 a barrel. As per Goldman forecasts, Brent is to average to $130 in 2013.

As per Barclays Capital forecasts, Brent is to average $115 a barrel in 2012 and Nymex crude, $110 a barrel.

Other major commodity banks such as Bank of America Merrill Lynch is projecting to average at $108 and WTI $101, Deutsche Bank feels Brent would touch $115, whereas, WTI would be around $105. And Standard Chartered Bank says Brent to average $107.5 and WTI: $100.25 during the year.

The London-based Centre for Global Energy Studies (CGES) is predicting an average Brent price of $111 for 2012 as a whole.

While this would still be a record annual average, it puts oil prices only slightly ahead of their current level.

CGES, however, points to the unknown impacting the overall scenario.

It argued that in case the global crude demand falls among the leading economies, and is not offset by growth in emerging nations, the average could slump as low as $76. And this is a big possibility for 2012.

There are indeed too many unknowns impacting the overall equation.

And indeed there is a host of pundits on the other end of the spectrum too. Capital Economics expects Brent to slide to $88 this year, Petromatrix believed it would hover around $88.75 only in 2012 and Bernstein expected the Brent to be around $90 in the year.

Morgan Stanley is also projecting Brent to trade below $90 for the first half of 2012, in case the current crisis in the euro zone leads to a painful recession.

Prices of Arabian Light oil, the major type of crude exported by Saudi Arabia, are expected to fall by 12 percent next year as demand declines.

Arabian Light will average $95 a barrel next year from an average 2011 price of $107.80, the Jeddah-based lender said.

This year's price rose 39 percent from last year, according to the report.

Crude markets are awaiting cue.

The state of global economy and the geopolitical considerations would be weighing heavily on the markets in the year.

And until the decks are cleared, nothing could be said with any certainty — despite what the analysts insist.

Non-fundamentals are to determine the course of the market behavior this year. Let's keep our eyes glued to headlines!