Crude, Broken Record, Blasts to Another Record
Posted on: May 8th, 2008 | By Doug Casey | Filed under Oil Investment & Alternative Energy
In the energy market Wednesday, crude for June delivery continued on its rocket trajectory to a new closing record, finishing at $123.53/barrel, up $1.69, after an intraday peak of $123.75.
June reformulated gasoline gained a penny, to $3.13/gallon.
The Energy Information Administration released its weekly inventory report yesterday, and it showed crude supplies climbing for the third straight week, up 5.7 million barrels for the week ended May 2. The three-week build is now nearly 12 million barrels.
Gasoline supplies rose 800,000 barrels, the EIA said, while distillate stocks were down 100,000 barrels. Refinery utilization fell to 85.0% of capacity from 85.4% a week earlier.
“This report is bearish, although it remains uncertain how much [it] will influence prices given the ebullient sentiment in the oil market,” wrote Chris Lafakis, of Moody’s Economy.com.
“It will be hard for the bulls to put horns on this bearish report,” said James Williams, of WTRG Economics, and he wryly suggested that “maybe we ought to call this the Goldman effect,” referring to Goldman Sachs’ projection for a $150-200/barrel oil price in the near future.
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