Economic rebound?
Investors are also hoping demand will rebound once the economy is
revived. With governments worldwide adopting stimulus packages, some economists
believe the economy could bottom out in the second half of the year.
The Federal Reserve said late January the economy was in worse
shape than it was in December, but a "gradual recovery [...] will begin
later this year."
And in its January monthly report, the Energy Department's EIA
said that after two years' decline, world oil consumption is expected to record
a modest rebound in 2010,.
Such forecasts have already encouraged oil investors to build up
their positions, even before prices start rising.
"We are in a world of increasing demand and decreasing supply
for tangible things, especially energy," said Steven Podnos, a financial
advisor at Wealth Care LLC. "Oil represents an attractive investment
sector."
