Refiner Sunoco Inc. (SUN), first discussed here on April 20, 2009 at a price of $26.58, continues to make up for lost time, clearing $40 resistance in the past three months, and the stock appears headed for $50 and beyond.

Sunoco, like other refiners, was hurt by the high oil price/low gasoline demand condition pervasive in the giant U.S. market during the Great Recession. Sluggish demand hurt refining margins throughout 2009 and in to 2010, and Sunoco's stock meandered accordingly. Then in late 2010, gasoline demand started to improve, and refiners were able to increase prices, improving margins.

Talk about late bloomers: refiner Sunoco Inc. (SUN), first discussed here on April 21, 2009, at a price of $26.58, has made it through gasoline's really tough period and has powered higher on signs of increasing gasoline demand.

Like other refiners of crude oil, Sunoco was hurt by the high oil price/low gasoline demand condition pervasive in the giant U.S. market. Sluggish demand squeezed refining margins throughout 2009 and in to 2010, and Sunoco's stock meandered accordingly.

To right-size for the new consumer budget-conscious era, Sunoco closed its Eagle Point refinery a year ago and also sold its polypropylene business. Related cost cuts followed.

Finally, investor patience is being rewarding with refiner Sunoco Inc. (SUN), first discussed here on April 20, 2009 at a price of $26.58.

Like other refiners of crude oil, Sunoco was hurt by the high oil price/low gasoline demand condition that took hold in the giant U.S. market: Sluggish demand hurt refining margins.

But now the U.S. gasoline market is showing signs of a rebound, and institutional investors (II) have started adding to their SUN positions, pushing the stock over $30 and back above the key, 50-day moving average.

When a stock meanders for a year, it's asking investors to exit the position. And that would have been the case with Sunoco Inc. (SUN), which I first discussed here on April 20, 2009, at a price of $26.58, had it not been for Sunoco's refinery operation designation.

Like other refiners of crude oil, Sunoco has been hurt by the high-oil-price and low-gasoline-demand condition pervasive in the giant U.S. market: Sluggish demand has hurt refining margins.

It has been yet another strong day for oil today, continuing yesterday's impressive gains. Yesterday oil was able to move up $1.44 a barrel and today traders have pushed the precious crude up another $0.46 to lift prices up to $68.11.

Today's move really shouldn't be much of a surprise to our readers, as we discussed yesterday, there is a perfect storm taking place right now for rising oil prices. We have several factors that are all pointing to even higher prices in the days to come.

Let's highlight the key points that are creating the current bullish oil market:

1. Violence between the Palestinian Authority's Fatah party and Hamas
2. Tensions between Iran and the West regarding its nuclear ambitions
3. Weak American refinery capacities

Those are the big three factors right now that are weighing on trader's minds. I will not rehash the details of each of the above three scenarios, but you can get my take on all of the above in my post yesterday on this topic. Basically, what we are looking at is the perfect environment to see prices continue to rise.

How much higher do I think we are going to see oil prices move? I have never claimed to see the future so I would hate to put a target on where I see things progressing, but I think it is highly likely that we are going to watch prices slowly move up to the mid $70's by the end of this month and would not be at all surprised to see $80 oil once again this summer. Also bear in mind that today we will see the front running futures expire and next week the August futures will take their place. This will create an artificial jump in prices of probably around a dollar, perhaps even more depending on what we see happening over the weekend.