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Oil futures prices have been heading upwards in May, consistently above $50 per barrel and spending most of the latter part of the month above $60.
For May, the average price of the WTI front-month contract on the NYMEX was $59: nearly $10 higher than April's average and a little more than that figure when compared to the average price for the year of $48 per barrel.
Recent reports noted optimism as to economic recovery, and more attention to supply issues. Talk of sub-$50 levels seems to have been forgotten and reports said there was much interest in whether prices would pass $70.
Oil prices for May are now close to average levels seen in 2005 and 2006, a $55-65 per barrel range, and some distance away from the average of $70 in 2007 and $100 per barrel in 2008.
Forecasters have been conservative with their estimates, with the US government's Energy Information Administration noting that prices were "expected to remain relatively flat for the remainder of 2009, averaging about $55 per barrel over the second half of 2009."
Recently, though, Saudi Arabia's oil minister predicted that prices would reach at least $75 per barrel by the end of the year.
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