Oil prices have been at a low for the past 5 months and this past week the prices of oil rose to $70 a barrel .This happened after the euro dropped further on Tuesday.

"The global markets are not optimistic about the Euro Zone staying together," said Mike Sander of Sander Capital Advisors. "They have shown this by pushing commodities and equities markets lower over the past two days after a one trillion dollar bailout from the EU and the IMF."

"The market has been very volatile. My thinking is that obviously the dominant factor is still concern about the international economic outlook, previous developments in Europe, and that's continuing to weigh heavily on the oil price," said David Moore of Commonwealth Bank of Australia.

United States crude oil prices rose to $70.62 after a 5 month low of $70.08. The price of oil for June is 20.5% lower than its recent 19 month high of $87.15.

"Nothing is impossible at the moment. The oil price has been falling dramatically in the past couple of weeks," said Moore. "I think at some point it will stabilize and recover, but the time is uncertain and the market's fundamentals are of course very very fragile at present."

"As we expect refinery runs to continue to increase, we remain confident that the situation in Cushing should reverse over the coming weeks," Goldman Sachs said after the news that 37 million barrels of oil were piling up at Cushing, Oklahoma.

A Reuters report said that the change in oilprices did not affect the net sales of oil in the country.

Stockpiles of crude at Cushing, Oklahoma, the delivery hub for the U. S. contract's West Texas Intermediate benchmark crude, have risen in the last eight weeks to a record high 37 million barrels, pushing front-month U. S. crude down relative to later futures contracts and the other global crude benchmark, Brent.

U. S. crude stockpiles likely rose last week as crude imports rebounded and refinery utilization held unchanged, a preliminary Reuters poll of analysts showed on Monday.

Ahead of weekly inventory data from industry group American Petroleum Institute (API) on Tuesday and the U. S. government Energy Information Administration (EIA) on Wednesday, crude inventories rose 700,000 barrels on average last week.

That would extend a buildup that started in the last week of January, and post the 15th increase in 16 weeks.

Distillate stocks were forecast at 1.0 million barrels higher while gasoline stockpiles likely fell 1.1 million barrels, the poll showed.

But Goldman Sachs said in a research note on Monday the high stockpiles at Cushing may reverse.

"As we expect refinery runs to continue to increase, we remain confident that the situation in Cushing should reverse over the coming weeks," it said.

Lawrence Eagles, JP Morgan's head of commodities research, also agreed that higher refinery runs, boosted by stronger cracks, will reduce Cushing stocks soon.

In China, demand continues to grow while exports are expanding, enabling top Asian oil refiner Sinopec Corp (0386. HK) to boost refined fuel sales to a new high of 390,000 tonnes a day.

Sinopec Corp also expects to raise its crude oil imports from Brazil by 43 percent to 200,000 barrels per day next year from 2010.

Japanese manufacturers turned optimistic for the first time in two years in May, a Reuters poll showed, providing further evidence of the economy's continuing recovery led by Asian demand.