Crude, of Course, Smashes Record Again
May 10th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Friday, crude for June delivery capped a week in which it rose 8.3% by smashing its closing record once again at $125.96/barrel, up $2.27. June reformulated gasoline gained 6.22 cents, to $3.20/gallon.
“There is this overwhelming reluctance to admit that we’re simply in a new paradigm for prices and short of a wholesale collapse of the global economy, prices just aren’t going to pull back to a $75 level for oil,” wrote Neal Ryan, of Ryan Oil & Gas Partners.
Crude demand is “outstripping supply at a drastic rate in the global picture, so despite a few weeks of positive reports via the U.S. EIA data, there is a general shift in attitudes.
“A year or two down the road, we’re staring at a supply/demand paradigm that is just ugly, no matter how it gets spun by pundits and policy wonks,” in Ryan’s grim assessment.
“Too little drilling, too many restrictions, too little conservation and alternative energy efforts combined with skyrocketing global demand are going to make things look bleak 1-2 years out on the price curve,” he concluded.
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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.