Oil Looks to Extend Gains

Oil prices started the week on an “up” note pushing prices to a new high for 2009 of $78.78 a barrel, up 25 cents on Friday’s close. Some analysts suggest that these prices are not sustainable and will likely drop back to the $65 – $75 range once investors look more closely at the fundamentals which do not support the current price gains.

“Oil prices are now trading at very high levels considering the fact that we’re still seeing very high stockpiles in the US,” said David Moore, a commodities analyst at the Commonwealth Bank of Australia.

BBC News

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