Crude Rallies
Jan 5th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Friday, oil initially dropped but then busted back to the upside, with crude for February delivery closing at $46.34/barrel, up $1.74 from the short Wednesday session and $7.31 from Tuesday. February reformulated gasoline gained 8 cents from Tuesday, to $1.1105/gallon.
Analysts cited a convergence of factors, including a Russian move to cut off natural gas to Ukraine, the ongoing conflict in the Middle East, and OPEC’s projected production cuts.
“A new mood has greeted the early days of 2009 and one that is not so gloomy,” said Phil Flynn, of Alaron Trading.
The Energy Department provided a boost, too, saying yesterday that it will take advantage of low oil prices to buy oil for the 727 million-barrel Strategic Petroleum Reserve, and fill it in 2009. The energy agency said it has issued a solicitation to buy about 12 million barrels of crude oil for the reserve, to replenish supplies sold after hurricanes Katrina and Rita in 2005.
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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.