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Energy

A Powerful Rise In Oil, Even By 2008 Standards

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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Oil will post its largest one-month rise since 1999 in May. That does not seem possible given that it rocketed up to $147 in the middle of last year. The news is a sign that crude prices are on a march that may not end this month.

According to Bloomberg, much of the fuel for the increase is the desire to put money which has been on the sidelines for months to work. If so, crude is going up for one of the same reasons that the stock market is–speculation.

The speculation could expand as investors gamble that it will be a cold winter in the northern hemisphere and that GDP improvements in China and India will mean demand is already stepping up. An end to the US recession before the end of the year would pressure the need for oil even more.

Of course, oil prices may be the greatest enemy of the recovery. If consumers and businesses are forced to take whatever improving income they have and put it toward oil-based products or gasoline that may suck the life out of a rise in discretionary income.

If May is any indication, the recovery may be put on hold for some time.

Douglas A. McIntyre

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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.

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