Crude Pulls Back from Record, but Stays High on Middle East Tensions
Jul 1st, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Monday, crude for August delivery retreated from a new all time high of $143.67 in electronic trading, to close at $140.00/barrel, down 21 cents from Friday. July reformulated gasoline was unchanged at $3.5015/gallon.
As the second quarter drew to a close, crude found itself up 9.9% for June, and 37.8% for the quarter. Year to date, the gain is 45.9%.
Tensions in the Middle East were on everyone’s mind.
“U.S.-Iran tension is still a major concern and could have a substantial impact on the market if military action takes place,” wrote Jeff Pritchard, an analyst at Altavest Worldwide Trading.
John Kilduff, of MF Global (MF), added that, “the war of worlds between Israel and Iran has moved up another notch, with Iran stating outright that shipping in the Persian Gulf, specifically the Strait of Hormuz, will be affected if it is attacked.” Any moves against shipping would of course bring the U.S. in.
Outside of that threat, “Due to the short trading week in the U.S., price movements [for oil] will be exaggerated but likely by the end of the week, oil will see widespread short covering ahead of the long holiday weekend,” wrote Kevin Kerr, editor of Global Resources Trader.
Source: Crude Pulls Back from Record, but Stays High on Middle East Tensions
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