Crude Falls Off
Jul 1st, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Tuesday, crude for August delivery fell off, closing at $69.89/barrel, down $1.60. July reformulated gasoline lost nearly 4 cents, to $1.8972/gallon.
The quarter ended with a net gain of 41% for crude. It was the biggest three-month advance since Saddam Hussein’s invasion of Kuwait in the third quarter of 1990.
Analyzing the day’s action, Phil Flynn, of Alaron Trading, said that, “All of the rising demand expectations got doused with the number on falling consumer confidence … This is key ahead of the big Fourth of July holiday as it increases fears that people will stay home instead of travel.”
Also weighing was that the U.K. GDP decreased 2.4% in the first quarter from 4Q08, the Office for National Statistics said in London, rather worse than forecasts for a slippage of only 2.1%.
With a holiday weekend looming, analysts have little in the way of prediction going forward. Typical was Stephen Schork, of the Schork Group Inc. of Villanova, Pa., who said that, “Once we come back from the holiday on Monday, it will be a whole new game … Price is high and demand is low. Attention may shift to the fundamentals.”
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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.