Oil expert: Gains in oil prices this week may signal start of recovery

Oil expert: Gains in oil prices this week may signal start of recovery
Oil rig in the Permian Basin. (Source: KWES)

MIDLAND, TX (KWES) - For nearly two years, it's been rough out there for many roughnecks.

But now finally, there's some relief.

Crude oil closed Thursday at nearly $50 barrel, a new eight-week high.

"It's been hanging around the low 40s for a couple months, so this looks good," said oil & gas consultant, Morris Burns.

Burns said the latest uptick is due to a potential production cut on the global stage. With OPEC output possibly going down, it's natural to see some kind of reaction in price charts.

"The market always overreacts to anything that happens," said Burns

The question right now is will it continue to go up?

"February, it was $26. Then it hit $40 and now it's getting closer to $50. If we get up into the $60 to $70 price range, we will see more activity. Two things have to happen. The price needs to go back up and there needs to be some stability to it," said Burns.

But instability is what most people in the oil industry know all too well.

"We're all worried you know, it can go away," said one are worker.

"Anybody that's been in this business for any length of time has ridden this roller coaster up and down. During the good times, you go bury a copper can full of money in the backyard and during the bad, you dig it up," said Burns.

Right now, things are good and experts worldwide are predicting, they'll get even better.

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