Crude Edges Higher, Brazil Welcomes Big Oil
Nov 14th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Thursday, oil managed to gain a little ground, with crude for December delivery closing at $58.24/barrel, up $2.08 on its last day as the front-month contract.
“The stock market has firmed up, which is giving the energy market some strength,” said Phil Flynn, of Alaron Trading. “It’s clear that an awful lot of bearish news has already been priced in.”
The Energy Information Administration’s weekly inventory report, delayed a day by the Veteran’s Day holiday, did little to move the market. Crude stocks were near-flat, rising by only 22,000 barrels, far below the forecast for a 1 million barrel gain.
But gasoline supplies rose by 2 million barrels, more than double the 850,000 barrel estimate.
The Organization of Arab Petroleum Exporting Countries, a subset of OPEC, is scheduled to meet in Cairo on November 29. However, non-Arab members of the cartel, such as Venezuela, Iran and Angola, will be invited to take part in talks about the oil market afterwards, OPEC President Chakib Khelil said.
And Brazil’s Petrobras has thrown open the newly-discovered fields off its coast to foreign Big Oil companies. Chevron and Shell expect to begin pumping in 2010, while Exxon, Mobil, Hess and Devon are engaged in exploration. It’s estimated that 50-70 billion barrels of oil could lie beneath Brazilian waters
Source: Crude Edges Higher, Brazil Welcomes Big Oil
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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.