Crude Pushes Higher
Jun 2nd, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Monday, crude for July delivery continued its relentless climb, closing at $68.58/barrel, up $2.27. July reformulated gasoline rose 2.9 cents, to $1.9243/gallon.
Crude was up for a sixth straight session, and now sits at its highest level in seven months. Yesterday’s rally came on top of a 30% rise during May, the biggest monthly gain in a decade, as the weaker U.S. dollar and hopes for an economic recovery have bred a gang of optimists.
Many analysts, however, have become increasingly concerned that oil’s recent upswing is overdone.
“What all these surging markets have in common is that their advances are occurring in spite of uninspiring fundamentals,” wrote Edward Meir, of MF Global.
“It seems that for the moment participants are not interested in the bearish dynamics of the market, and instead are pushing values higher on solid technicals and bullish exogenous variables, such as the weaker dollar, firmer equity markets, and improving macro data,” Meir added.
And a PetroChina (NYSE:PTR) official said gasoline and diesel prices in that country are going up by the equivalent of 19 cents a gallon, effective yesterday. The move represents increases of about 6% to 7% over current average gasoline and diesel retail-ceiling benchmarks.
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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.