Oil and gas prices surge to new 2009 highs

Prices for both crude oil and gasoline are trading higher based on this morning’s Energy Information report that Administrations’ (EIA) report that oil inventories rose less than anticipated, while gas inventories dropped by 5.2 million barrels.

Additional support for the high oil prices comes from the weak U.S. dollar, which has hit a 14 month low against the “basket” of currencies that the dollar typically trades with. Oil is always priced in U.S. dollars in all trading around the world.

According to Art Carbone, a veteran trader on the New York Stock Exchange, oil will surge into triple digit territory (above $100 per barrel) shortly. “As gasoline supply continues to drop and the oil demand comes back, the price of oil is going to surge”, he said.

Carbone went on to say that before oil starts pricing over $100 per barrel, we will have to see a rebound in distillate demand (distillate fuels are fuels such as heating oil and diesel). He expects this to happen sooner, rather than later, and says that the surge in oil prices could happen very quickly and suddenly.

If you have room in your gas tank, you might think about topping it off before the prices rise at the gas stations.

Written by Shelby Bateson