Crude Punches Over $70
Jun 10th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Tuesday, crude for July delivery pushed past $70, closing at $70.01/barrel, up $1.92. July reformulated gasoline rose 3.4 cents, to $1.97/gallon.
Analysts ascribed the rally to the dollar’s decline and Energy Department forecasts of higher fuel prices.
“Recent parallels between the movements of the U.S. dollar and the oil price are the result of market expectations that there will be an economic recovery soon, which will eventually lead to higher interest rates and higher oil demand,” wrote analysts at Commerzbank.
But they also cautioned that “demand is very fragile, especially at currently high oil price levels.”
Meanwhile, the Energy Information Administration raised its outlook for this year’s crude-oil and gasoline prices. Crude is expected to average $58.70 a barrel this year, the EIA said in its monthly report, up from the $52 forecast a month ago. The EIA also raised the outlook for next year’s crude price to $67.42/barrel from $58.
Regular gasoline prices are expected to average close to $2.70 a gallon in July, the agency said. Average price for the full year is expected to be $2.33.
Source: Crude Punches Over $70
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