In the energy market on Tuesday, crude for April delivery rose $1.50 to settle at $41.65/barrel. April reformulated gasoline finished at $1.3194/gallon.

“Bulls are finding some technical hope in the fact that oil failed to close below $40 a barrel [Monday],” said Phil Flynn, vice president at Alaron Trading in Chicago. “[They are] also finding hope in the fact the stock market is attempting a rebound.”

Energy traders also kept an eye out for what might be next from the Organization of Petroleum Exporting Countries as well as what U.S. petroleum inventories for last week will show.

“Given the recent weakness in oil prices, we suspect that OPEC cannot afford to do nothing, and will have to put another cut through in order to insure that it stays in front of a rapidly deteriorating demand curve,” said Edward Meir, an analyst at MF Global (NYSE:MF).

The oil cartel has already announced a reduction in output of 4.2 million barrels a day since September, equivalent to about 5% of global oil demand. OPEC members will meet on March 15 in Vienna.

Source: Crude Bounces Back

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