Maybe T. Boone Pickens got it right for once. He said oil would hit $60 before it dipped below $40 last week on CNBC. And now oil has held at $45 pretty solidly. Bloomberg reports that traders expect oil to jump to $50 in the next few months.
Some of the events driving the price upward: OPEC meets next Sunday, and will likely cut supply even further. The weakened dollar push some traders to invest in commodities. Seasonality is also causing a shift. Each year around this time as summer approaches, the price lifts slightly. And if some of these global stimulus packages kick into effect, maybe industrial production will rise again necessitating more oil.
Business Insider Emails & Alerts
Site highlights each day to your inbox.