Posted on 04/27/2015 5:38:18 AM PDT by thackney
Brent crude oil is at $65.37 per barrel and has gained around $9 since March.
A slowdown in US shale oil production and the conflict in Yemen have been cited as the main reasons for the rise in the oil price in recent weeks.
It comes as BP, Shell and Exxon Mobil are expected to report sharp falls in first quarter earnings this week.
Michael Hewson, chief market analyst at CMC Markets, said: "Overall we are in an upwards trend and we do appear to have found a short-term base. There's a good chance we could see $70 a barrel [for Brent] over the course of the next month or so."
While Yemen itself is not among the biggest oil producers in the Middle East, Gulf producers ship oil along the Gulf of Aden on Yemen's southern coast and through the narrow straits of Bab el-Mandeb, between Yemen and Djibouti.
As a result fighting in the region could create log jams in delivery.
'Cautious view'
Over the next few days the oil majors BP, Shell and Exxon are set to report results and city analysts are forecasting falls of more than 60% in profits, compared with the same three month period a year earlier.
(Excerpt) Read more at bbc.com ...
“Gas prices here in SW Pennsylvania jumped from 2.39 to 2.69 a gallon in about 5 days. “
That is more likely due to the long-running union strike against the refiners. (The issue, as I understand it, was one union wanted to represent all the workers as opposed to the many unions they have now.) Even if that has been resolved, there’s massive inertia in the oil supply cost structure. The price of a barrel at the well will probably not be reflected at the gas pump for many months.
Let the EEEEEEEVIL Big Oil conspiracy theories fly...
When the US carrier group moved into the Yemen area, and the Iranian ships exited, it would seem to me there’s little worry that the straights will now be in danger. We could see price coming down again.
Meanwhile, natural gas is at $2.46, down from $4.00 just a couple of months ago, a huge benefit to the economy.
Uncharacteristically, our Energy Department is now moving to fast-track the export of LNG. Four terminals now have green light, is my understanding.
“Let the EEEEEEEVIL Big Oil conspiracy theories fly...”
There is evil in big money but darned little of it is from big companies. It’s from “charitable” institutions that grant political favors for cash. It’s from committed Marxist idealists like George Soros who has raised crony capitalism to a world class sport. But the days when trusts and companies had people killed or beaten up are long gone. Now its politicians from the Clintons to the Putins who have people killed or beaten.
What goes down must come up :)
Same here in Atlanta, GA. It was briefly below $2 at a few stations.
Unfortunately that price didn't last long. I did get one sub-$2 fill up.
Just filled my pickup at Walmart for @2.12/gal
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