"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.
>To contact the writer of this article, click here: Eric Rosenbaum. >To follow the writer on Twitter, go to Eric Rosenbaum. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV