Oil Futures Move Higher

Oil futures moved higher Friday, closing out a week of broad price swings and strengthening the belief that the recovery in crude prices may still be alive.

Crude oil settled at $15.59, up about 75 cents since a midweek slump featuring two days of sharp declines.

“It was a technical correction to the sharp sell-off,” said Nauman Barakat, an analyst in New York with Smith Barney, Harris Upham & Co. “But there continues to be the perception that as we get into the major driving season, demand for gasoline should pick up significantly,” he said.

Industry data this week showed a buildup in gasoline stocks, an indication that demand is lagging.

“This was a pretty ominous development,” Barakat said, “but the market has a short memory and seems to have forgotten this already. It’s still optimistic about greatly increased gasoline demand.”

Gasoline futures finished the week on a strong note, with the June contract up 1.20 cents for the day at 53.44 cents a gallon.

“The market was up enough for me to feel that there is a good chance that the foundation is set to continue the recovery phase next week,” said Peter Beutel, analyst with Rudolf Wolff Energy.