Crude Backs Down
Jun 14th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Friday, crude for July delivery pulled back, closing at $134.86/barrel, down $1.88. July reformulated gasoline fell 6.74 cents, to $3.4626/gallon.
Voicing interventionist sentiments, James Williams, of WTRG Economics, said that, “We had another week of uncertainty, with oil trading more as a currency and inflation hedge than based upon the fundamentals … This will continue to be the case as long as the long-only index funds are allowed free rein in the futures market.”
On the supply side, said it expects global oil demand to grow to 86.88 million barrels per day for 2008, down from the estimate of 86.95 million it forecast in its May report.
OPEC knows that their “ability to increase production over the entire organization is severely limited, if possible at all, so by backing down their demand outlook, they have no reason to have to get into the debate on why they shouldn’t be increasing their supply,” said Neal Ryan, of Ryan Oil & Gas Partners.
Source: Crude Backs Down
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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.