Oil Prices - April 8

[dan_s]

Oil prices moved sharply higher on Friday morning, lifted by firm economic indicators from the United States and Germany which could support fuel demand.

The International Energy Agency (IEA) will publish their monthly Oil Market Report next week. If it confirms falling Non-OPEC supply and rising global demand, we should see a move above $40/bbl for WTI.

So far this year, the oil price rallies have been driven by speculators short covering. At the end of each oil price cycle, speculators eventually give up on trying to make money on the downside for oil. When they shift to go long, that is when oil prices will move steadily higher. I expect that to happen in Q3.

Raymond James will open our April 25th luncheon in Houston with an update on their oil price forecast.