Bloomberg. Crude oil hit a record $58.60 a barrel before closing at $58.40 in New York on signs producers will struggle to meet growing fuel demand during the second half of the year. Analysts immediately began taking about the next threshold.
(Historical price chart to right. Click to enlarge.)
There is no question that the market is going to $60.—Kyle Cooper, Citigroup
I don’t think there’s any doubt we’re headed higher. We had a correction and came back to the 200-day moving average. If we get through $58, $70 will be the next big number.—John Murphy, chief technical analyst at StockCharts.com
Oil prices may rise next week as producers strive to meet growing demand from refiners, a Bloomberg survey showed. Thirty-five of 68 analysts and strategists surveyed, or 51 percent, said oil prices will increase next week. Eighteen, or 26 percent, said they will fall, and 15 forecast little change.
Global oil use will rise to 86.4 million barrels a day in the fourth quarter, 200,000 barrels more than forecast a month earlier, an International Energy Agency report showed this week (earlier post). The world pumped an average of 83.8 million barrels of oil a day in the first quarter. U.S. crude-oil supplies fell 4.9 million barrels in the last two weeks, Energy Department figures show.
The previous record of $58.28 was reached on April 4. Prices have risen 9.2 percent this week and are up 52 percent from a year ago.