Crude Moves a Bit Higher
May 15th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Thursday, crude for June delivery edged higher, closing at $58.62/barrel, up 60 cents. June reformulated gasoline rose 3.49 cents, to $1.7237/gallon.
Traders ignored the jobs data, focusing on rallying stocks in the U.S. equity indexes, along with surprisingly steady results from major retailers.
Crude’s rebound came after morning trading influenced by the International Energy Agency, which said it now expects demand to fall 2.6 million barrels a day from 2008 levels. That’s 200,000 barrels more than the IEA had projected a month ago.
“Continued oil demand weakness is premised on strong economic recovery later this year remaining elusive,” the IEA wrote, with demand is expected to stand at 83.6 million barrels a day this year.
Oil, along with other commodities and stocks, has benefited from the market’s “vote of confidence” for the economy over the past eight weeks, said Ashraf Laidi, of CMC Markets. But “while both oil and equity indices reveal preliminary signs of a consolidation, downward momentum is particularly expected to weigh on oil,” Laidi wrote.
Source: Crude Moves a Bit Higher
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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.