, Columnist
Why the Oil Price Rally Might Falter
Prices probably won't collapse, but Canada's return should give pause for thought
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Last year's oil price rally ran out of steam in early May after 112 days. This year's has already lasted longer (140 days so far) and prices have risen further, but there are worries that, it, too, may be running ahead of market fundamentals. While prices seem unlikely to collapse again, there are good reasons to expect a pause in their upward march.
Crude prices have nearly doubled from the lows reached in mid-January. Brent rose above $50 a barrel last Monday and stayed there all week. West Texas Intermediate crude narrowly failed to do the same after breaking through the psychological barrier on Tuesday. Brent prices have risen an average 18 cents a day since mid-January, remarkably similar to the 19 cents a day early last year.