Crude Soars
Mar 13th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Wednesday, the price of oil soared more than 11%, with crude for April delivery closing at $47.03/barrel, up $4.70. April reformulated gasoline rose almost 9½ cents, to $1.3457/gallon.
“It’s all about OPEC,” said Phil Flynn, of Alaron Trading. Flynn also noted rumors that Russia is pressuring OPEC into a production cut. Russia, the second-biggest oil producer, is reportedly saying it will go along with any OPEC action to reduce supply.
“Of course the reality is that Russia probably has to cut back anyway to do maintenance, but the rumors do have influence,” Flynn said.
OPEC, which will meet in Vienna on Sunday, is experiencing some internal debate about whether or not to cut output further. Some members are apparently pushing for full compliance with their earlier cuts, rather than announcing more reductions.
However, “if nothing more substantial than pledges of vigilance come from the weekend’s meeting, the markets will show their disappointment,” said John Kilduff, of MF Global (NYSE:MF).
Advertisement
I'm Pretty Sure this will Shock You...
We just made an amazing discovery from S&A - a discovery that could make 2009 the most profitable year ever.
If you haven't heard about this yet, you're definitely missing out on some tremendous opportunities.
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.