Today, the price of oil rose to a six-month high of $63.45 and the national average price for a gallon of regular unleaded gasoline rose to $2.655. In the last month alone, the price for a barrel of light crude oil increased approximately 25%. Is this the peak of the rally or should we expect even higher prices?

According to Saudi oil minister Ali al-Naimi, prices will keep increasing since demand is “picking up, especially in Asia”. Nuaimi said, “You bet we’re seeing it (increased demand) from some of our customers for more oil and we’re providing it… There is a lot of optimism in what I am saying because I see the recovery coming.”

Just this month, two different OPEC spokesmen have stated that oil has to go to at least $75 per barrel, otherwise production will either be cut, or would not be increased when the world economy to expands, which amounts to a cut. Al-Naimi is confident oil prices will return to about $75 a barrel by this year’s third or fourth quarter without a cut saying “There is no need to cut production. If demand picks up, then why do anything?”

Even though the price for oil has had a powerful rally, it is still less than half what it was during summer of last year. With plenty of room left to run, many investors question how to best profit from this rally. One of the greatest sources of returns is the micro-cap stock market, but of course due diligence must to be performed to reduce the risk associated with the much higher returns offered by investing in these smaller companies.

Tamm Oil & Gas Corp. (TAMO.OB) is one of the micro-cap companies we’ve been watching this month. Tamm is an emerging junior oil and gas exploration and development company focused on adding corporate asset value through the drilling and production of heavy oil. The company has acquired 35 sections (22,400 acres) of land in the Peace River Oil Sands Area of NW Alberta. Tamm retains a 100% working interest in mineral rights on these lands and estimates a prospective nature of potentially 2.33 Billion original barrels of oil in place on the properties between the Debolt and Elkton zones.

Today, Tamm announced that it has acquired an additional 7,860 Acres of in the Peace River region of Alberta from three private corporations. According to an engineering report from a qualified independent Petroleum Engineering firm, the Mississippian-aged Lower Debolt and Elkton member zones for these lands contain 2.33 billion barrels of Total Original Heavy Oil in Place. This acquisition increases Tamm’s land holdings in the Manning area to over 30,000 acres and will provide the company with the resources needed for continued growth.