Crude Falls
Jun 23rd, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Monday, crude for July delivery plummeted on its last day as the front-month contract, closing at $66.93/barrel, down $2.62. July reformulated gasoline dropped 6.47 cents, to $1.8597/gallon.
Like other commodities, crude was hit hard by the World Bank forecast. And contracts’ last days are often more volatile.
“Last week’s drop in gasoline prices is also having an impact [on crude],” said Kevin Kerr, president of Kerr Trading International. “If we see the dollar be able to hold support here, we may see oil prices weaken further, [but] of course the opposite is true should the dollar fall apart.”
This could be the beginning of the pullback many have been calling for, for quite some time. “The outlook remains challenging in light of weak demand and high spare production capacity,” wrote analysts at Credit Suisse.
On the supply front, over the weekend Nigerian rebels from the Movement for the Emancipation of the Niger Delta claimed they staged three attacks against facilities of Royal Dutch Shell (NYSE:RDS.A/RDS.B). However, a Shell spokesman confirmed only two attacks and said that production was not seriously affected.
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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.