Crude Slides
Jul 2nd, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Wednesday, crude for August delivery dropped off, closing at $69.89/barrel, down $1.60. August reformulated gasoline lost 4.3 cents, to $1.859/gallon.
“We feel [oil is] very overbought at these levels and crude has had a very hard time putting new highs right now,” said Zachary Oxman, of TrendMax Futures. “I see the markets settling down for a few months before the fourth quarter.”
In its weekly inventory report, the Energy Information Administration said crude stocks unexpectedly rose 2.33 million barrels in the week ended June 26, advancing for the first week since late May.
Gasoline supplies increased 2.3 million barrels and distillates were up 2.9 million barrels. Both numbers were higher than expected. And total U.S. daily fuel demand in the four weeks ended June 26 was down 5.8 percent from a year earlier, the EIA said.
“Supply and consumption remain really bad,” said Bill O’Grady, the chief markets strategist at St. Louis-based Confluence Investment Management. “It’s hard to make a bullish case for anything.”
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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.