Crude Still Surging
May 21st, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Wednesday, crude for June delivery moved higher, closing at $62.04/barrel, up $1.94. June reformulated gasoline dropped a third of a cent, to $1.8095/gallon.
In its weekly inventory report, the Energy Information Administration said that crude stocks decreased by 2.1 million barrels in the week ended May 15, slightly more than expected. But that still leaves them above the upper boundary of the average range for this time of year, the EIA said.
Gasoline supplies plunged by 4.3 million barrels, falling below the lower limit of the average range, while distillates rose by 600,000 barrels. Refinery utilization stood at 81.8% of capacity, a slight improvement over the 80.4% figure from a week earlier.
On the other side of the equation, gasoline demand has averaged about 9.1 million barrels per day over the past four weeks, down by 1.2% from the same period a year ago. Jet fuel consumption dropped by 9%, year-over-year.
With crude now more than 70% above February’s low near $34 a barrel, “The global recovery could be hampered by rising crude and gasoline prices,” said Tariq Zahir, of Tyche Capital Advisors.
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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.