Oil tops $65

Remember just a few months ago when the cost of oil was just above $30 per barrel and drivers were enjoying prices that hadn't been seen in years? Seems like a distance memory as gasoline rises above $2.40 per gallon and crude tops $65 per barrel.



The latest data from the Energy Information Administration showing that stockpiles fell 5.4 million barrels in the latest week is lending support to prices today. Inventories, however, remain well above the average for this time of year.

Gasoline reserves are still holding below the average range and fell another 600,000 barrels in the latest week. That is also propping up prices at the pump.

What gives? I would say it's good news-bad news. On the one hand, expectations that the world economy is nearing a bottom and a recovery may begin in the US later this year are helping to push prices back up. However, the state of the economy remains fragile, and the extra dollars from cheap gasoline could fuel additional consumer spending.

Elsewhere, OPEC voted to hold the line on production as expected. A more detailed look can be viewed at Huliq.com.