Crude Shoots Higher
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In the energy market Thursday, crude for October delivery responded by factoring in the coming inflation and soared nearly 7% to close at $104.55/barrel, up $6.67. October reformulated gasoline added 11.7 cents, to $2.5997/gallon.
Oil traders were understandably in a dither as to what ultimate effect Washington’s shenanigans will have on the energy sector.
Phil Flynn, of Alaron Trading, poked fun at the situation by saying, “This could be the “biggest identity crisis for a commodity since Razzles did not know whether it was a candy or a gum.” But seriously, “Is oil a safe haven commodity in times of financial meltdown or is it just a false sense of security when the demand side of the equation comes tumbling down?”
For now, “the energy market is still well supported by solid fundamentals, despite slowing demand growth for oil and its products on the back of waning global growth this year,” wrote Andrey Kryuchenkov, of Sucden Research.
“However, the dust on the financial markets needs to settle before investors start paying closer attention to supply and demand basics,” he added.
Interesting that in trying to sort things out, few analysts are using the word “inflation.”
But hey, at the least the coming week “should be interesting as we get a chance to digest what all has happened the last 10 days,” said Neal Ryan, of Ryan Oil & Gas Partners.
Source: Crude Shoots Higher
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Tags: , Crude Oil Prices, Doug Casey, gas pricesAbout the Author
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.