Crude Drops
Feb 3rd, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Monday, oil dropped off, with crude for March delivery closing at $40.08, down $1.60. March reformulated gasoline plunged after its recent runup, shedding 12 cents, to $1.1492/gallon.
Oil, which had been on a tear that took it above $48 on January 26, largely due to OPEC production cuts, is back in the doldrums again.
“OPEC’s compliance continues to be impressive but may be prolonging their own economic pain by creating more demand destruction,” said Phil Flynn, of Alaron Trading.
And Edward Meir, of MF Global (NYSE:MF), wrote that, “The bearish macro backdrop should cap any sharp rallies above $50, while the OPEC cutbacks seem to have stopped — at least for now — the worst of the recent downward spiral … Of the two variables, the macro element is by far the more important.”
Elsewhere, the United Steelworkers union agreed to extend talks on a new contract for thousands of workers at U.S. refineries, thereby avoiding a strike, at least for the moment.
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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.