Oil Price drifting higher

[dan_s]

IMO oil and natural gas prices will drift higher at least through the summer. Keep in mind that commodity prices never move in a straight line for long. - Dan

Analysts expect another drop of 1.8 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos., when the American Petroleum Institute announces its weekly supply data late Tuesday and the Energy Department's Energy Information Administration releases its report on Wednesday.

Some analysts expect the growth in oil demand in developed countries to catch up with burgeoning consumption in developing countries and push prices higher.

"We expect prices to eventually move back above $80 supported by the strong growth momentum in demand," Barclays Capital said in a report. "Despite price movements being at the mercy of macroeconomic jitters lately, $70 has emerged as a strong floor and with good reason."