Is it the prospect of global recovery or the prospect of inflation that’s driving oil prices higher? Adam Lass says you don’t have to choose – the opportunity for profit is there either way.

Oil held above $40 a barrel on Wednesday after a 4 percent rally in the previous session, as equities gained and investors looked ahead to U.S. inventory data expected to show rising supplies.

In the energy market Monday, crude for July delivery inched higher, closing at $127.76/barrel, up 41 cents. July reformulated gasoline opened as front-month contract by adding 4 cents to $3.39/gallon.

This from Bloomberg:

Royal Dutch Shell Plc said a militant attack on a pipeline has cut as much as 169,000 barrels a day of Nigeria’s Bonny Light crude production as rebels claimed responsibility for two more strikes today.

Crude futures contracts in New York have hit fresh highs of $117+ a barrel on the news of the attacks. Crude oil prices climbed to a new record after Shell said exports would be cut — the highest since futures started in 1983.