Crude Rallies
Jun 24th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Tuesday, crude for August delivery surged, closing at $69.24/barrel, up $1.74. July reformulated gasoline rose 3.35 cents, to $1.8932/gallon.
“Inventories expectations and the weak dollar are helping crude,” said Phil Flynn of Alaron Trading. Trading was “choppy with all the news that awaits us such as inventories and the Fed meeting.”
The Energy Information Administration will release its stockpile data this morning, with analysts expecting that U.S. commercial crude stocks will have dropped 1.2 million barrels, according Platts.
But fundamentalists are decrying the lock step inverse movement of crude and the dollar.
“The fundamentals don’t seem to matter,” said Bill O’Grady, the chief markets strategist at St. Louis-based Confluence Investment Management. “I can tell you what the oil market is going to do by just looking at the currency market.”
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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.