Commentary by Eric Wilder – The price for crude oil on the New York Mercantile Exchange reached $68.35 today, a 4 1/2 month high.  Natural gas also was on the increase, gaining 37.5 cents to settle at $9.28 per MCF.  The session is unusual because it is coming off reports by the EIA that indicate storage of both crude oil and natural gas are more than adequate and also on the rise.

Increasing demand for both products, or perception of increasing demand, is perhaps the underlying reason for today’s rise in fossil fuel prices.  This, along with continued unrest in the Middle East, particularly Iran, and further disruption of infrastructure in oil-rich Nigeria.  And, the savvy marketers haven’t forgotten about the quickly approaching hurricane season.

http://www.ericwilder.com  http://justeastofeden.blogharbor.com