Oil prices: 'April is a bullish month'

chart_ws_commodity_energy_oil.top.pngclick on chart for more on commodities By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- Oil prices continued to trend up Friday, after ending the first quarter at a two-and-a-half-year high, and most experts think that will remain the case for the foreseeable future.

"Oil is going stay stay firm," said Paul Colby, senior vice president at Planalytics. "It'll probably go even higher."

Crude prices have been volatile over the past three months, as unrest in the Arab world continues to spark worries about potential production disruptions.

Oil prices topped $100 a barrel in February amidst protests in Egypt and Tunisia. The civil war in Libya, Africa's third largest oil producer, also pushed prices higher.

The earthquake and tsunami in Japan, which hosts the world's third largest economy, continued to underpin already nervous sentiment.

On Friday, crude oil settled up $1.22 at $107.94 a barrel.

"Today the fundamentals are still very bullish, and we should continue to go higher." said PFG Best senior market analyst Phil Flynn. "The Middle East situation is not calming down any time," he added.

Flynn attributes the bullish April outlook to higher demand for better quality crude during the switchover period from the end of winter heating season to the summer driving season.

"I hate to give you a bad April fools joke, but the month of April is a very bullish month for oil prices," Flynn said.

The weaker U.S. dollar is also playing a role in the price rise since most commodities, including oil, are priced in dollars.

And the Fed is expected to keep interest rates low -- a move that would keep the dollar weak.

"Low interest rate policy is very good for demand in commodities. Crude oil would feed into inflation and high prices," Platts senior oil analyst Linda Rafield said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.08%4.25%
15 yr fixed3.17%3.23%
5/1 ARM3.30%3.37%
30 yr refi4.06%4.19%
15 yr refi3.16%3.18%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,045.21 -76.80 -0.45%
Nasdaq 4,550.24 -19.38 -0.42%
S&P 500 1,991.91 -8.21 -0.41%
Treasuries 2.33 -0.03 -1.27%
Data as of 9:37am ET
Company Price Change % Change
AbbVie Inc 55.70 -0.05 -0.09%
Staples Inc 11.48 0.43 3.89%
Applied Materials In... 22.63 0.40 1.80%
Frontier Communicati... 6.74 0.05 0.75%
Wells Fargo & Co 51.34 -0.22 -0.43%
Data as of Aug 27

Sections

Malaysia Airlines lost $97.4 million in the second quarter as the carrier reeled from the loss of a second aircraft. More

Former Fed chief Ben Bernanke believes the 2008 financial crisis was the worst in global history, topping even the Great Depression. More

Snapchat has gotten a $20 million funding round from Kleiner Perkins, valuing the company at $10 billion, according to the Wall Street Journal. More

Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Five CNNMoney readers share stories about saving that you can learn from: What they would do differently if they had another chance. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.