Reply #25: Oils rally as crude returns to $55 [View All]

[UpInArms]

http://cbs.marketwatch.com/news/story.asp?guid=%7BDC5F1A77%2D9620%2D405A%2DB3FB%2DF3C16AD5795F%7D&siteid=mktw

DALLAS (MarketWatch) - Oil and gas stocks rallied Thursday morning as crude futures returned to the $55 level.

Goldman Sachs, in a research note Thursday, said oil prices could reach $105 a barrel, up from a previous estimate of $80. See full story.

"The strength in oil demand and economic growth, especially in the United States and China, following a year of $40-$50 per barrel WTI oil has surprised us... The reason for this adjustment in view is that persistent high prices are improving the financial position of key oil exporting countries and could serve to keep potential revolution at bay," said analyst Arjun Murti.

Ahead of the open of the New York Mercantile Exchange, May crude added 2 percent, or $1.07, to $55.06 a barrel.

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