What’s Behind the Crude Oil Spike to $112 and Why There’s More to Come

Friday, April 22, 2011
By Paul Martin

Kent Moors, Ph.D
Market Oracle
Apr 22, 2011

Crude oil prices rose for the third straight day yesterday (Thursday) – with more of the same to come.

West Texas Intermediate (WTI) crude for June delivery rose to $111.50 a barrel on the New York Mercantile Exchange, and traded as high as $112.48, the highest intraday price since April 11. Crude prices are up by a full third so far this year.

Brent crude is trading at $123.70 a barrel on the ICE Futures Europe exchange in London.

The latest surge in oil prices is not a result of new geopolitical developments – although they continue to weigh on the market.

Nor is it a result of any short-term inventory problems in either the United States or Western Europe. In fact, available supply of both crude oil and finished products continues to run considerably above five-year averages. American stockpiles are now at multi-year highs.

This spike is our introduction to a very quickly changing oil sector – one in which demand is coming from new quarters, and concerns are increasing over sufficient balance among regions.

The New “Oil Dynamic”

The Rest…HERE

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