In the energy market on Thursday, oil edged higher after slipping below the $40 mark in intraday trading, with crude for March delivery closing at $41.17, up 85 cents. March reformulated gasoline added 5 cents, to $1.27/gallon.

Oil will remain “very volatile as traders roll into the new month and supply concerns are starting to weigh on the short side of the market,” said Kevin Kerr, editor of Global Commodities Alert.

“A reflation environment is upon us and hard assets like oil and gold are starting to look much more interesting,” Kerr added. “I think we will see this market move higher over the next few weeks, but it will do so in fits and starts as cautious traders remain wary.”

However, Edward Meir, of MF Global (NYSE:MF), believes that crude “markets still seem to be trapped within a trading range, as market anticipation about OPEC cuts — both current and pending — is keeping something of a floor below prices, while the upside is capped by lingering concerns over the macro situation.”

Source: Crude Bounces Back Over $40

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