Wednesday, May 6, 2009

Oil Prices: Slow and Steady, Closing on $60

From Environmental Capital:
Is demand for oil recovering?

Crude inventories in the U.S. are still building, but less than expected and a lot less than in recent weeks. The latest government data showed a mere 600,000 barrel increase in U.S. oil inventories, compared with analyst expectations of a 2.5 million barrel increase. Gasoline stocks also fell slightly last week.

That was enough to send crude oil futures jumping more than 4% to above $56, the highest level in six months. That may be a far cry from the $150 oil of last summer. But it also means oil has quietly risen 70% since bottoming out just before Christmas—in the face of unrelenting bad news on the economy and with few red flags to excite oil bulls....MORE

See also: yesterday's post AMP Capital Buys Into Commodities on Signs of Growth. Plus: "Oil May Break Resistance, Rise to $71.55: Technical Analysis"

And today's "George Soros Hearts Oil and Gas (COP; HES; PBR; PXP)"