Crude Price Little Changed
Apr 24th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Wednesday, crude for June delivery debuted as the front-month contract by rising slightly to close at $118.30/barrel, up 23 cents. May reformulated gasoline gained 3.23 cents, solidifying its place above $3 at $3.0424/gallon.
Yesterday marked the first week in a while where the Energy Information Administration’s weekly numbers didn’t surprise to the downside.
The EIA reported that crude stockpiles rose by 2.4 million barrels for the week ending April 18, which was slight above analysts’ expectations for a 2 million barrel increase.
The EIA also reported that U.S. gasoline supplies fell by 3.2 million barrels, vs. expectations for a drawdown of 2.25 million barrels, while distillate stocks fell by 1.4 million barrels as against projections for a buildup of 250,000 barrels.
U.S. refineries really ramped up production, operating at 85.6% of capacity, more than 4% higher than the previous week’s 81.4%, the EIA reported.
Analysts went fishing for a sense of direction. “With little in terms of resistance ’signposts’ to guide us, we would need the market to define a top for us, presumably by moving to new highs followed by a same-day reversal to daily lows,” speculated Edward Meir, of MF Global.
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.