Crude oil prices for July delivery were on pace Wednesday to close higher for the third straight day and at a fresh 2009 high after Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries oil cartel, said the global economy is strong enough for rising prices.
In late morning trading, crude was up 14 cents per barrel to $62.59. Crude is up 84% after hitting its closing low of $33.98 in February 2009, and Tuesday hit the highest settle since Nov. 5.
“Ali Naimi, Saudi Arabia’s oil minister, expects to see prices go up, which raises concerns and makes us think there could be a drop in exploration and production,” said Phil Flynn, vice president and senior market/energy analyst of Alaron Trading.
OPEC plans to meet for a closed session on Thursday to set output policy and possibly make cutbacks in production, which could lower supply and send prices higher.
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“Obviously, OPEC is making it clear we shouldn’t expect much change and regardless of OPEC, we should expect to see high prices,” said Flynn. “OPEC is proving they have their own best interests at heart.”
Meanwhile, for the third straight day and six of the last seven sessions, heating oil is up, rising 0.0072 cents per gallon to $1.5525. RBOB gasoline is also up for the third straight day, gaining 0.0229 cents per gallon to $1.8753.
Also, gold futures fell 50 cents per troy ounce to $954.60.
