Crude’s Slide Continues
Aug 13th, 2008 | By Doug Casey | Category: Financial News, Oil Investment & Alternative EnergyIn the energy market Tuesday, crude for September dipped again, closing at $113.01/barrel, down $1.44. September reformulated gasoline slipped 2.3 cents, to $2.8432/gallon.
Crude declined to a three-month low on concerns that sagging demand will overrule any potential supply disruptions.
Supply anxieties also fell following news that Russia had ordered an end to military operations in Georgia, in spite of the fact that some news reports said the conflict continued despite the order.
“The slowdown in demand related to the general economic downturn and high oil prices is becoming increasingly evident,” the International Energy Agency said in a report. “Consumers clearly are reacting by a change in [driving] behavior.”
Spot on, because Americans’ gasoline usage plunged by 800,000 barrels a day the first half of this year, the biggest 6-month decline in 26 years.
But while July’s runup was “clearly overdone, the $35 fall in a month is equally unsustainable,” contends Michael Fitzpatrick, of MF Global (NYSE:MF). “Unmistakable economic contraction of apocalyptic proportions would be necessary, and this is not the case,” Fitzpatrick wrote.
Source: Crude’s Slide Continues
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.