Oil honoraria strengthened Monday with the main international contract moving superior to before $40 US for the first time since December on predictions that OPEC ss on set a new floor for oil prices.
Brent oil, the international contract traded in London, was trading at $40.66 US a barrel at noontime, an increase of more than 5 per cent. West Texas Intermediate, the mains North American contract was up 4.7 per cent at $37.62 US a barrel.
Peak oil prices helped push Toronto stocks higher, with the TSX up 218 shows at 13,431 at midday.
The TSX has moving higher for more than a week as the zing sector and gold recovers.
The Canadian dollar was also stronger at 75.22 cents US.
Gary Ross, a prime oil price prognosticator at New York-based consultancy PIRA, has told Reuters he believes oil values will rise to the $50 level by the end of the year.
Ross is among a numbers of analysts who believe that oil prices bottomed out in January, when they drove below $30 a barrel.
He has hopes for a planned meeting sometime after Step 20 between members of the Organization of Petroleum Exporting Countries and Russia.
He believes OPEC drive like to set a $50 US a barrel floor for oil, as its members are suffering economically from low fees. That could mean some production cutbacks as the year starts on.
“They want $50 oil, this is going to become the new anchor for international oil prices,” he said.
“While it may not be an official target price, you’ll attend to them saying it. They’re trying to give the market an anchor.”
Notwithstanding that oil has been rising steadily in price for three weeks, there is peacefulness a record amount of oil in storage around the world.
That means scads analysts are much less optimistic about a continued rise in rates.
However, the Baker Hughes rig count released Friday shows the add up of U.S. oil and gas rigs fell by 13 to 489, with more than 700 rigs idled in the recent year as prices tanked. The number of Canadian rigs was down 46 to 129, with 171 rigs bar down in the st year.