Crude Falls More
Jul 8th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Tuesday, crude for August delivery prolonged its slide, closing at $62.93/barrel, down $1.12. August reformulated gasoline lost a penny, to $1.73/gallon.
Economic worries seem to have firmly established themselves at the driver of the moment. “The market got way ahead of itself with hopes that the [global economic] recovery would be quick,” said Zachary Oxman, managing director at TrendMax Futures.
“I think the dips you are seeing now are preceding the next big down move in stocks and commodities as well,” Oxman added. “I’d be net short, with a trading bias to the short side.”
Another bear is Edward Meir, of MF Global, who wrote that, “Despite the string of declines hitting the crude-oil markets of late, we do not think the current selling bout is over just yet … The markets remain vulnerable to a poor fundamental backdrop, typified by high stocks and lackluster demand.”
And in noise out of D.C., the Commodities Futures Trading Commission says it will hold hearings in July and August on whether to limit investor positions in commodities, particularly crude oil, heating oil, natural gas and other energy products. The CFTC is targeting investments from exchange-traded funds and index investors.
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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.