crude oil in high-stands

Crude oil started off on a positive note. It rose to $135 a barrel when U.S stockpiles dropped unexpectedly and traders closed losing trades on bets that prices would fall. Oil has risen 19 percent this month as analysts have increased their price forecasts because of supply constraints and demand growth. Everyone's jumped on the bandwagon and there's agreement that $200 is possible and that's getting more people into the market. They have very little supply cushion going forward and that's playing into the minds of investors. Rising oil prices are starting to affect other areas of the economy, particularly the transportation industry. There are rising concerns it will slow growth as increases in fuel cause costs to surge.