Oil nears $42, closes at 7-week high ($43-$44.75 by mid-week?) [View All]

[RamboLiberal]

http://www.marketwatch.com/news/print_story.asp?print=1&guid={CAAEE58B-0A3A-48EF-8EBA-24F79449E42A}&siteid=myyahoo

Oil futures climbed near $42 a barrel Monday to close at their highest level in seven weeks, lifted by expectations of limited OPEC output capacity and continued violence in Iraq.

Prices ended less than 70 cents short of $42.33 a barrel, the loftiest level ever recorded on the New York Mercantile Exchange.

"There are just too many factors that are pointing to much higher prices right now, and there is little to encourage traders on the short side of the market that their positions are going to get much relief," said Kevin Kerr, a senior trader at Kwest International.

Crude prices will probably "continue to creep higher, and as it approaches record levels this week, we may see significant short covering," he said.

Still, "it's very likely that by the middle of the week, if the supply data is bullish, that crude could be trading in the $43 to $44.75 range," he said.