"Global demand growth for oil remains the driver for higher prices," said BMO Capital Markets analyst Dan McSpirit.
While oil was rallying above $90 in U.S. trading on Monday, in the broader context, there has been a relief rally in the energy markets after six consecutive losing sessions for crude oil through last Tuesday. Last Wednesday, crude oil rebounded from $86 after its sixth-straight losing session, but that was right ahead of the Egyptian crisis unfolding. Friday's big selloff as the Egyptian news was digested seemed to have been followed by another relief rally on Monday, and a continuation of the upward trend in oil back towards $100 after the recent pull back.
Coming into 2011, there were many energy analysts predicting the price of oil would rise well above $100, but there is growing consensus that oil between $80 and $100 will be the sweet spot for crude in 2011.
-- Written by Eric Rosenbaum from New York.
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