Olivier Jakob at Petromatrix points out on Friday:
Today is the last trading day of the month and if things are left unchanged at the close then May 2009 will print in absolute terms the highest monthly gains ever for WTI, beating by a few cents the month of… May 2008.
So far the rise in crude prices has not spooked anyone; it has been a relatively gradual increase. The rise has even been welcomed by consuming nations, not just as a possible sign of economic recovery (although this is debatable) but as protection against a devastating fall in investment that lower prices create. Consuming nations were warning of the ill effects of low oil prices at the G8 energy ministers’ summit in Rome last weekend:
Italian Energy Minister Claudio Scajola said: “A low oil price helps in times of economic crisis but discourages investment and does not guarantee a future of stability. It is necessary to have an equitable and not volatile price that can guarantee global economic growth and also the possibility of investment.”
So far so good – as long as it doesn’t go too high and threaten growth.
Oil prices caused the recession, redux: and what it means for the future (FT Energy Source, 26/05/09)
Opec: $75 – $80 oil is okay, says Naimi (FT Energy Source, 27/05/09)