Oil, Another Record
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In the energy market Tuesday, crude for August delivery punched to a new alltime closing high of $140.97 up 97 cents. July reformulated gasoline added 1.4 cents, to $3.5134/gallon.
Trading was muted yesterday ahead of today’s inventory report from the Energy Department. Stockpile surprises could be a real price driver today, but if not, the ECB meeting probably will.
“If the ECB does raise rates and issues a strong policy wording to boot, we could see another dollar sell-off going into next week and a push higher toward the $150 mark on crude,” wrote Edward Meir of MF Global (NYSE:MF).
Tensions also served to keep the price high, as Iran made it clear that an attack by Israel would be treated as an attack by the U.S., and retaliation would include closing the Strait of Hormuz.
“Any disruption of supplies from the Gulf would certainly send prices surging higher,” said Michael Fitzpatrick, also of MF Global. Israel has the “will and the capability” to attack Iran, and has “made no effort to quell the world’s rising concerns over a possible conflict,” he wrote. And a comment from Israeli Deputy Prime Minister Shaul Mofaz that a clash was “unavoidable” was “very disconcerting,” Fitzpatrick added.
Source: Oil, Another Record
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Tags: Crude Oil Prices, Doug Casey, MFAbout the Author
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.