Oil Prices Rally Again Despite Massive Supply

JOHN PORRETTO

HOUSTON (AP) — Oil prices continued to rise Thursday and climbed above $58 a barrel for the first time in nearly six months as the U.S. economy showed some signs of recovery. Still, oil analysts continue to search for fundamental reasons as to why energy prices have risen to current levels.

Upbeat employment and retail news aside, energy consumption remains anemic and most experts say it will be some time before there's a rebound, save for an uptick in summer driving.

Benchmark crude for June delivery rose 37 cents a barrel to settle at $56.71 in trading on the New York Mercantile Exchange. Earlier in the session, the contract reached a high of $58.57.

In London, Brent prices rose 32 cents to settle at $56.47 a barrel on the ICE Futures exchange.

"We have events coming together that can drive energy prices higher in spite of the plush supplies we have," Phil Flynn, an analyst at Alaron Trading Corp., wrote in a client note Thursday. "We have a market that's fixated on the prospects of a much-faster-than-expected global economic recovery."