Crude Sags More
Feb 12th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Monday, oil continued to sag, with crude for March delivery closing at $35.94, down $1.61. March reformulated gasoline, though, stubbornly pushed higher, adding 2.6 cents, to $1.2698/gallon.
Trading was affected by the Energy Information Administration’s weekly inventory report, which showed a larger-than-expected build in crude stocks of 4.7 million barrels for the week ending February 6.
Gasoline supplies fell by 2.6 million barrels while distillates were off by 1 million barrels. Refineries were operating at only 81.6% of capacity vs. 83.5% the previous week, the lowest level in four months.
Separately, the Paris-based International Energy Agency predicted yesterday that this year’s global oil demand will fall by 1 million barrels a day, or 1.1%, from last year. Should it happen, that would be the biggest yearly drop since 1982.
“While current OPEC supply curbs will eventually begin to clear the onshore stock overhang, significant volumes of ‘floating’ oil could dampen any upward price momentum in the short term,” the IEA wrote.
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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.