Crude Climbs Fifth Day Straight
Jul 22nd, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market, crude oil for August delivery rose 74 cents from Monday to close at $64.72/barrel. August reformulated gasoline climbed more than 2 cents to finish at $1.812/gallon.
The August contract expired yesterday at the highest settlement level for a front-month contract since July 2. The more active new front-month September contract also turned higher, to $65.61 a barrel.
“People are buying in thinking that demand will pick up for oil and products soon,” said Zachary Oxman, managing director at futures trading firm TrendMax Futures.
Meanwhile, energy traders are awaiting the Energy Information Administration’s report on petroleum inventories scheduled for release later today.
Analysts surveyed by Platts expect a decline of 2 million barrels in crude stockpiles and an increase of 800,000 barrels for gasoline. They also project an increase of 1.4 million barrels in distillate supplies.
Total petroleum inventories, including crude oil, gasoline and diesel, are expected to rise for a sixth straight week, adding to what already is a 19-year high.
“The fundamental picture looks bleak and far too much uncertainty remains on the demand outlook, so a move lower is possible,” said Nimit Khamar, of Sucden Financial Research.
“However, given the [oil] market is mainly driven by financial markets and economic sentiment for now, and not [by] oil fundamentals, further gains cannot be ruled out, although a rally based on this comes with an increased risk of a sharp correction,” Khamar added.
Source: Crude Climbs Fifth Day Straight
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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.