Crude Barrels Higher
Jun 5th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Thursday, crude for July delivery shot higher, closing at $69.15/barrel, up $3.03. July reformulated gasoline rose 7.19 cents, edging ever closer to the $2 mark, at $1.9735/gallon.
Traders reacted positively to the claims report, although the real jobless number comes today with the latest unemployment figures.
In addition, traders took a cue from Goldman Sachs (NYSE:GS), which increased its 2009 oil price forecast to $85 a barrel, up from $65/barrel previously. Goldman analysts wrote that the recent rally in crude prices is likely to be “the first stage” in a rally for oil prices that they anticipate will coincide with an economic recovery.
Looking shorter term, analysts at Commerzbank said that a further price correction is likely soon, perhaps even to a range of $50 to $55 a barrel. “We think that the recent optimism about an imminent rise in oil demand was overdone and that oil inventories remain at a very high level,” they said.
Meanwhile, many continue to search for the break point, where fundamentals will kick in. “The market probably has a little bit more left in it to mount a push to $72 resistance before more substantial setback sets in,” wrote Edward Meir, of MF Global.
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