Crude Pushes Higher
Jun 1st, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Friday, crude for July delivery continued to climb, closing at $66.20/barrel, up $1.12. June reformulated gasoline rose 2 cents, to $1.93/gallon.
“Oil market participants’ conclusion that the worst of the recession has passed and that a recovery in demand must be at hand was bolstered overnight by higher than expected first-quarter growth in India and a sharp jump in Japan’s April industrial production,” said John Kilduff, of MF Global.
OPEC released a statement after its Thursday meeting, which said in part: “The severe and broad impact of the ongoing global economic downturn, precipitated by the financial crisis, has led to a weakness in global oil demand, which is likely to remain for some time.”
Analysts at Commerzbank wrote that “the current oil price movements should not be taken for granted and be viewed as a one-way street … The oil price faces downside risk insofar, as hopes of a demand recovery could potentially be disappointed and OPEC member states may decide unilaterally to expand their production due to higher oil prices,” and they said they expect oil prices will reach $70 by the end of 2009.
In the natgas arena, natural gas rose sharply over the course of the week, to $4.505 per million British thermal units. Submitting a strong week for a change, natgas tacked on a solid 15%.
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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.