Oil soared today to $49.16 a barrel, hitting a three month high. Looks like OPEC’s lack of cuts doesn’t matter.
The consensus on the jump in price seems to be the good housing starts data, coupled with a general bull run has investors feeling like the economy might lift, causing an uptick in production and a renewed demand for oil. Environmental Capital adds that “April crude futures, which expired Tuesday, rose more than 3% to $49.06; May futures were even closer to the $50 mark.”
Oil companies all finished up, with US Oil ETF USO up 3% for the day.
But even with with oil soaring, investors remain weary of alternative energy. The solar stocks didn’t recover from their day long crash. Everyone jumped off the Energy Conversions (ENER) boat, with 10.5 million shares shares traded and the price falling 23%. And First Solar (FSLR) got kicked along the way, the stock dropped 7% and 6 million shares were traded.
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