Oil Prices firming up
NYMEX Crude Oil opens today at over $71/bbl., and Brent Crude in London is trading at over $73/bbl today. NYMEX Heating Oil is up over 5 cents a gallon this morning. Natural gas is up almost 2.5 cents today.
A weaker dollar and renewed confidence in a global economic recovery are the primary drivers behind strong showings for Oil and Natural Gas prices this morning. As more economies around the world show signs of recovery, the supply and demand for crude oil favors continuing price increases.
The oil services firms like Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL) are selling for roughly half of what they were a year ago, but with prices looking like they are going to continue stay firm or continue to increase as the recovery picks up steam, the entire energy sector should see the stock prices begin to move back up.
The outlook for domestic suppliers and drillers should be bright moving forward. You can look at the Department of Energy’s Energy Information Agency’s (EIA) website for Petroleum Inventory and pricing data.
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