Crude Plummets, but Then Recovers
May 16th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Thursday, crude for June delivery tumbled early, as far as $120.90, before late buying pushed it nearly all the way back, to close at $124.12/barrel, down just 10 cents.
June reformulated gasoline lost a penny, to $3.17/gallon.
Dow Jones MarketWatch wrote that, “The expiration of options on June crude also played a key role in oil’s volatile moves Thursday as did Congress’ passage of legislation that offers regulators greater oversight of energy markets.”
In addition, traders are “seeing a round of profit taking swamping the market,” said Thomas Hartmann, of Altavest Worldwide Trading. “Prices have been unable to really push above the $126.50 level in the last four sessions.”
Ho hum. “Up one day, down the next, and the same ground keeps getting covered as crude oil prices consolidate in a range around $125,” said Michael Fitzpatrick, of MF Global.
The EIA’s Wednesday inventory reports showed a gain in crude stocks, as expected, but “traders have reacted to this as they have to most every pullback since the winter lows: renews buying fervor,” Fitzpatrick wrote.
Source: Crude Plummets, but Then Recovers
Advertisement
While most people are being decimated by the ongoing market collapse, a small group of smart folks are turning the market plunge into big gains of 224%... 279%... 214%... 291%... and more! Here’s how to turn the market crisis into your personal profit machine. First come, first served… so reserve your space now…
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.