Investors able to prop up $50 oil, for now

Updated

It's a disconnect that has some oil traders shaking their heads, even while other oil industry pros say the condition is warranted. Oil is sloshing around in global markets, but its price remains relatively high at around $50 per barrel.

Case in point: Rotterdam, Europe's largest port, is running out of space to store crude oil, Bloomberg News reported Wednesday. Rotterdam can store about 75 million barrels of crude oil, or about a five-day supply for the European Union, which in 2009 is expected record consecutive demand declines for the first time in 25 years.

Meanwhile, U.S. oil inventories are at or near three-year highs. And yet, the price of oil hangs above $50 per barrel, trading up $1.01 to $50.93 on Wednesday at mid-day. Unleaded gasoline averages about $2.05 to $2.15 per gallon in the United States, according to gasbuddy.com data.

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