Oil Back Above $50 Per Barrel; Expected To Rise

[babylonsister]

Oil: Low prices are behind us
OPEC cuts and a pullback in investments are beginning to raise prices, but $147 is a long way off while the world's economy remains in the doldrums.


NEW YORK (CNNMoney.com) -- Crude closed at $33.87 a barrel earlier this winter, and that's likely the lowest we'll see for some time.

Oil prices crossed the $50 a barrel mark Thursday, the first time since early January. Thursday's uptick is largely due to the falling dollar, but the underlying fundamentals in the oil market indicate low prices are behind us.

While demand remains abysmal, production cuts from OPEC and scaled-back investments from oil companies are beginning to curtail supplies.

That, say analysts, means crude prices won't likely trade below the $40 range they've been locked in for the last three weeks.

"OPEC cuts are taking hold," Adam Sieminski, chief energy economist at Deutsche Bank, wrote in a recent research note. "Looking into the second quarter we believe oil prices are starting to find a floor."

more...

http://money.cnn.com/2009/03/18/markets/oil_prices/index.htm?postversion=2009031916

[raccoon]

1. I noticed gas prices had gone up a little around here. nt

[Statistical]

2. $30 oil was just as crazy as $150 oil was.

Unless world wide consumption drops massively $30 is just not sustainable.