60 SIX DOLLARS!

spotmarketoilfreeze

Oil closed its massive May run at $66.31, fuelled today by positive economic data from the U.S., India, and Japan. Also, the weakening dollar isn’t helping things.

Reuters: Oil prices have jumped around 30 per cent this month, the largest monthly rise since March 1999, buoyed by expectations of a global economic recovery later this year, which helped push stock markets higher.

U.S. crude oil for July delivery was up 87 cents at $65.95 per barrel by 2:18 EDT (1918 GMT), after reaching $66.47, its highest level since early November last year.

London Brent crude gained 91 cents to $65.30.

The dollar hit a five-month low against a basket of other currencies. A weak dollar makes oil cheaper for holders of other currencies and tends to support prices.

Data Friday showed Japanese industrial production rose 5.2 per cent in April on a monthly basis, and the government said it expected continued gains through June.

U.S. growth data Friday also reinforced the sense that the global economic slump might be abating.

Here’s a brief recap of the month in Oil:

  • OPEC decided to leave production alone, and told the world it would like oil to cost $75 a barrel.
  • McKinsey put out a report that said an oil spike was inevitable.
  • So did the EIA and the IEA.
  • China was accused of hoarding oil. It also regained the thirst for the oil, as demand rose on year over year basis for the first time.
  • That’s slightly at odds with Exxon’s stance that demand hasn’t changed.
  • Of course all of this is going to kill the consumer, and stifle an economic recovery.

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