Oil has been making big moves week after week. I've been writing for the past few weeks about the fact that if the price of oil moves above $51 per barrel, we will see higher prices going forward at the pump. As for the past 7 or 8 months we have seen the price of oil fall from a all time high of $149.50 per barrel to a low of $35.13 per barrel in December of 2008. The price of oil has been moving in a sideways consolidation for the past 16 weeks.
Oil is now increasing in price above its 5 and 10 week moving average and has been moving to the upside for four consecutive weeks. As of the close of the markets on Thursday March 19, 2009 the light crude contiuous contract ended trading at $51.64 per barrel up $4.61 or 9.80 percent.
Oil prices moving higher will also give alternative energy stocks a boost in the long term. Solar, wind as well as ethanol related stocks will all benifit from the higher prices especially being that they all have been beaten down for several months as the pice of crude fell lower and lower. The stocks to watch going forward are stocks such as (XOM) Exxon Mobil, (FSLR) First Solar, (PDO) Pyramid Oil and Gas, (ENER) Energy Conversion Devices, servationwellas other alternative, (WFR) MEMC Electronic Materials to name a few.
By: Marlin Rolle
Please have a look at the chart below: