Crude Slips Back
May 22nd, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Thursday, crude for July delivery fell back, closing at $61.05/barrel, down 99 cents. June reformulated gasoline dropped just under a penny, to $1.7997/gallon.
Analysts cited concerns over the economy in the U.S., as well as the deepening recession in the U.K.
Britain took a hit yesterday as Standard & Poor’s lowered its credit outlook on the U.K. to negative from stable for the first time ever. The ratings agency cited the country’s ballooning debt, which could continue to expand even if the economy recovers.
The move raises the ugly prospect of a credit-rating downgrade in Britain, and hints at the possibility of a lowering of the outlook in the U.S., which has embarked on a similar path of big spending and quantitative easing.
“I think there will be a downgrade on the U.K. and I think there will be a downgrade on the U.S. outlook from one of the Big Three” credit-rating firms, said Stephen Gallo, analyst at Schneider Foreign Exchange.
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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.