Crude at Another Record, Stockpiles Decline Again
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In the energy market Wednesday, crude for August delivery jumped again, setting yet another alltime closing high at $143.57 up $2.60. July reformulated gasoline tacked on 3.6 cents, to $3.5494/gallon. The action came as the Energy Information Administration, in its weekly inventory report, said that crude stockpiles declined by 2 million barrels for the week ended June 27.
It was the sixth weekly drop in the past seven and puts stocks “near the lower boundary of the average range for this time of year,” the EIA wrote.
Gasoline supplies, however, rose 2.1 million barrels, and distillates were up 1.3 million. Refineries were operating at 89.2% of capacity vs. 88.6% the previous week.
“Despite the increase, refinery capacity utilization should be well over 90% at this time of year,” wrote Chris Lafakis, of Moody’s Economy.com. “The fact that it is not is a testament to a razor-thin crack spread [the refinery’s margin] that has been depressed by heretofore exceptionally weak gasoline demand.”
Demand for motor gasoline over the past four weeks averaged 9.3 million barrels per day, down 1.7% from the same time a year ago, the EIA reported.
Source: Crude at Another Record, Stockpiles Decline Again
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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.