Crude 'bullish' ahead of driving season

21/05/2009

Traders are looking to find a strong price range for crude oil and distillates such as heating oil as they draw optimism from signs of global economic recovery, one analyst tells Reuters.

Tony Nunan, risk manager at Mitsubishi Corp in Tokyo, commented: "The market is in a technically bullish mode right now - $62 (£39) was one target and now that we've attained that, a new range of $55 to $62 is in play."

At the close of trading on the New York Mercantile Exchange yesterday (May 21st), crude futures hit a six-month peak above $62 a barrel, with prices driven up by the latest report from the Energy Information, which showed a sharp decline in diesel and gasoline stocks ahead of the summer driving season in the US.

The season traditionally peaks on the July 4th holiday weekend, when millions of Americans embark on driving vacations.