Oil prices leaped over the $60/bbl mark this morning on comments from the chairman of Libya's National Oil Corporation. Abdullah Salem El-Badri said in a telephone interview with Dow Jones that " crude demand will bounce back in the next few weeks on the back of forecasts for a colder-than-normal winter in the northern hemisphere".

El-Badri also said that "oil prices are undoubtedly going to remain very strong for the foreseeable future with WTI remaining close to $60.00 a barrel."

Hum, I believe I said that oil would hover around the $60/bbl mark yesterday after seeing the most recent Commitment of Traders Report (see Oct 24th Journal- " The Oil "Big Boys").

Here is how the Energy Futures are currently trading:

Energies

Crude Oil (CLZ5)Dec 0561.90+1.5860 12:09

Crude Oil (CLF6)Jan 0662.25+1.7060 12:10

Crude Oil (CLG6)Feb 0662.35+1.5760 12:04

Crude Oil (CLH6)Mar 0662.20+1.2760 11:19

Gasoline Unleaded (HUZ5)Dec 051.6700+0.0372 12:08

Gasoline Unleaded (HUF6)Jan 061.6940+0.03371 12:10

Gasoline Unleaded (HUG6)Feb 061.7000+0.02271 11:30

Gasoline Unleaded (HUH6)Mar 061.7075+0.02021 10:39

Heating Oil (HOZ5)Dec 051.9150+0.06791 12:10

Heating Oil (HOF6)Jan 061.9475+0.06641 12:09

Heating Oil (HOG6)Feb 061.9620+0.07091 11:50

Heating Oil (HOH6)Mar 061.9440+0.07291 11:37

Natural Gas (NGX5)Nov 0513.900+0.89613 12:09

Natural Gas (NGZ5)Dec 0514.050+0.87313 12:09

Natural Gas (NGF6)Jan 0614.350+0.81513.53014.42013.515 12:07

Natural Gas (NGG6)Feb 0614.180+0.72013.45014.18013.430 11:36

The refiner's, oil services, and natural gas stocks are all trading higher while the integrated oils are the laggards: SLB + 2.69, MRO + .30, SUN + .66, CHK + 1.34, VLO + 2.70. I happen to be of the opinion that the refiners will continue to be acquisition candidates. After Unocal's purchase by Chevron, it is only logical to assume additional purchases will follow.

I really feeling that Marathon (MRO) is a very attractive choice for someone like Chevron or Conoco. Marathon only has 1 refinery along the Gulf Coast (Texas), with the majority of their operations away from the dangers of hurricanes.