Crude Sags
Feb 18th, 2009 | By Doug Casey | Category: Financial Newsn the energy market on Tuesday, oil turned south again, with crude for March delivery sinking to close at $34.93, down $2.58 from Friday. March reformulated gasoline also dropped, losing 9.6 cents, to $1.11/gallon.
With some analysts openly predicting sub-$30 oil, Edward Meir of MF Global (NYSE:MF) wrote that, “Whether the December low of $32.40 holds remains to be seen, but given that OPEC is working hard to institute cutbacks, while at the same time signaling that another cut in March could be imminent, we suspect that prices should sustain themselves above the $30 mark at least for a little while longer.”
But Iraq’s oil minister, Hussain al-Shahristani, reiterated yesterday that OPEC is “of course” weighing new output cuts to prop up prices.
“At $40 per barrel, very few investors will be willing to invest in developing oil fields. And that’s going to create a big shortage in the world supply, which is not healthy,” al-Shahristani said.
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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.