Oil is surging again today, driving right back up through the key technical and psycological level of $60.

The strength in crude oil is stemming from a host of factors, not the least of which is a weaker dollar. As drivers have noticed gasoline prices are edging up too and getting closer and closer to $3 as we approach the summer driving season.

The truth is that as the eocnomy is starting to improve and as the stock market finds some legs energy usage will increase. It’s a simple fact that any recovery in the global economy is going to require more energy andyet during this time of low prices we have not seen more investment in alternatives but far less, during this time we have not seen more drilling we have seen none, during this time we have not seen new refineries built, nor any big rush to partner with oil producing countries…..

So what’s different this time around Answer: nothing, except we will have even less supply online.

OPEC is likely to cut in my opinion or hold steady and say they will observe…OPEC is really a non issue these days in my opinion and while the World will watch and wait for their decision it will likely have any real impact on longer term prices. Stay tuned it will be a very interesting trading day today. Look for more updates soon.

Oil rises above $60 on signs recession easing
Oil rises above $60 in Asia, extending rally on signs US recession is easing

Alex Kennedy, Associated Press Writer
On Tuesday May 19, 2009, 5:08 am EDT
SINGAPORE (AP) — Oil rose above $60 a barrel Tuesday in Asia after investors took heart from signs the U.S. recession is easing.

Benchmark crude for June delivery was up $1.09 to $60.12 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange. On Monday, the contract jumped $2.69 to settle at $59.03.

Investors on Monday cheered a better-than-expected profit report from home improvement chain Lowe’s Cos., an uptick in homebuilder sentiment and positive comments from analysts about U.S. banks, all of which suggested the U.S. economy is gradually emerging from a severe recession. The Dow Jones industrial average jumped 2.9 percent.

While most analysts expect oil prices to increase over the next year as global economic growth recovers, some suspect the recent surge from below $35 a barrel in March may have gone too far, too fast.

“The move from $40 to $60 has happened faster than we thought it would,” said Bob Doll, vice chairman of BlackRock, which manages $1.3 trillion of assets. “But a year from now oil prices should be modestly higher than where we are today.”

The jump in prices for gasoline and other oil products shouldn’t choke off a fledgling recovery in consumer demand since the fall from $147 a barrel in July helped free up extra spending cash, Doll said.

“We’ve got our eye on it, but we’re not overly concerned,” he said. “Oil versus a year ago is still down a whole bunch.”

In other Nymex trading, gasoline for June delivery rose 2.76 cents to $1.76 a gallon and heating oil gained 1.54 cents to $1.49 a gallon. Natural gas for June delivery jumped 4.7 cents to $4.19 per 1,000 cubic feet.

In London, Brent prices rose 88 cents to $59.34 a barrel on the ICE Futures exchange.