Crude Drops Off
Apr 14th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Monday, oil plummeted, with crude for May delivery closing at $50.05/barrel, down $2.19 from Thursday. May reformulated gasoline fell nearly 2 cents, to $1.4632/gallon.
Traders ran for cover after the International Energy Agency released a report saying that it is cutting its demand projection by 1 million barrels a day.
After its latest reconsideration, the IEA believes that global demand this year will now come in at 83.4 million barrels a day. That would be 2.4 million barrels a day below the 2008 level.
“The IEA report and lower stocks are pushing oil lower,” said Phil Flynn, of Alaron Trading. “It is hard for oil to continue to ignore evidence of weak demand when the stock market is floundering.”
And MF Global (NYSE:MF) analysts said that, “We do not expect the relationship between U.S. stocks and energy to end anytime soon.”
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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.