Optimism is Building Around Oil

A quiet consensus appears to be coalescing in the oil market, as some traders now expect mild gains for crude through the summer — and into the rest of the year.

That represents a sharp turnaround from earlier in the year, when surging U.S. production, and OPEC’s powerlessness to stop it, sent crude reeling. Although Brent is off by nearly 40 percent year to date, prices have rebounded significantly enough for market players to expect those gains to continue.

“I’m looking for it to trade $65, $70 by the Fourth of July, and I don’t think the market gets much above that,” said NYMEX-based energy trader Anthony Grisanti.