Crude Back Over $50
Mar 20th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Friday, crude for April delivery rose $1.97 to close at $51.61/barrel. April reformulated gasoline finished up more than 7 cents at $1.4373/gallon.
MarketWatch reported that crude-oil futures soared more than 7% on Thursday to end at their highest level in nearly four months, as the Federal Reserve’s plans to buy government bonds ignited hope for an economic recovery and increased energy demand.
The Fed’s plan to purchase as much as $1.15 trillion in U.S. bonds and mortgage-backed securities also sparked inflation worries and led the dollar to plunge, which also pushed up dollar-denominated oil prices.
“It is all the Fed. It changed the fundamental picture for oil overnight,” said Phil Flynn, vice president at Alaron Trading. “You can look at the dollar and the possibility that these lower rates will stimulate growth and increase demand.
“It’s more difficult being short oil now because the Fed has unlimited printing power,” he added.
And we’ve already witnessed Bernanke’s willingness to exercise that power on countless occasions.
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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.