S&P 500
7,615.40
-0.09%
Dow Jones
51,329.00
-0.08%
Nasdaq 100
30,646.40
-0.23%
Russell 2000
2,930.28
-0.10%
FTSE 100
10,374.60
-0.13%
Nikkei 225
68,514.20
+1.50%

Energy

Oil Moves Toward $60,

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Oil prices hit a low of $33.87 about a month ago. Now there are a lot of reasons that they could top $60, coming close to doubling in less than 60 days. While the drop from $147.27 last summer was a relief, the current climb may be extremely painful because it could compound other factors which are fueling the recession.

The latest rise in oil prices is supposed to be based on two things. The first is a weakening dollar, which could be an issue for several months, depending on how hard the Fed will fight to combat the US liquidity and credit crisis.

The other factor is harder to gauge, which makes it more frightening. Over the last few weeks the perception has begun to emerge that the recession may be bottoming and that the global economy could pick up toward the end of the year, driving more crude consumption especially in the largest nations–the US and China. Recent data on manufacturing output would make the notion that the recession is blowing itself out unlikely. But, if consumer sentiment and business capex do not drop sharply, there will be enough anecdotal information to encourage some traders to bid oil up.

The trouble with the cycle of modestly good news leading to higher oil prices is that they could undercut any economic recovery. The low price of gas and petrochemicals has been one of the few bright spots that have benefited consumer living costs and helped manufacturing company margins. Those benefits may be coming to an end.

Douglas A. McIntrye

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Could A 2008-2009 Recession Wipe Out Seven Million Jobs?

Based on the figures from the Bureau of Labor Statistics, US unemployment was 5% in April. Those figures showed that…

Douglas A. McIntyre |

What The Double Dip Recession Will Look Like In 2011

A Gallup poll taken last month showed that confidence in the economy has fallen to its lowest level since March…

Douglas A. McIntyre |

PC Prices May Jump As Chips Become Scarce

The prices of most PCs have been down over the last three years as consumers looked for bargains and the…

Could Gas Prices Drop to $2?
Douglas A. McIntyre |

Could Gas Prices Drop to $2?

Gasoline prices may be poised to drop to $2 a gallon. That could lessen the impact of a recession on…

Summer Sales Will Likely Make or Break Ford Stock
Chris Lange |

Summer Sales Will Likely Make or Break Ford Stock

Ford will likely have the summertime blues when it comes to reaching its sales goals. How bad those blues will…

Will Q3 GDP Reverse All the Q2 GDP Losses?
Jon C. Ogg |

Will Q3 GDP Reverse All the Q2 GDP Losses?

The big question now is just how long it will take to make up the recent massive losses to U.S.…

Douglas A. McIntyre |

Ford, Volkswagen Sales Expected to Drop in March

While car and light truck sales are expected to barely inch up this month compared to March a year ago,…

Douglas A. McIntyre |

China’s Boat Gets Slower, US Economy To Benefit

The hopes of the Chinese central government that its economy can avoid a recession fade with each passing month. The…

Douglas A. McIntyre |

The Auto Industry Begins To Sink, Again

The automobile industry is once again in a period of lowering demand for its vehicles and this may put  two years of  advances in jeopardy.  Last…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826