Crude Tops $70
Jun 8th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Friday, crude for July delivery slipped, closing at $68.44/barrel, down 37 cents. July reformulated gasoline fell three-quarters of a cent, to $1.9546/gallon.
Crude flirted with the $70 mark yesterday, briefly topping it for the first time in six months, at $70.32, in a rush of optimism immediately after the jobs data came out.
Despite the slippage, crude ended the week up 3.2%.
“Crude turned around to the downside because of the strength we are seeing in the U.S. dollar,” said Tariq Zahir, of Tyche Capital Advisors. “More importantly, the fundamentals of crude oil are still bearish … Demand is down, and inventories are up.”
Credit Suisse analysts concurred, saying that, “Demand destruction is still a topic in the market … At the same time, OPEC production has started to grow again. We think price risks are skewed to the downside.”
In the natgas arena, the fuel was higher on the week, with July futures gaining 10%, to $3.868 per million British thermal units.
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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.