Oil Back on the Upswing – Small Truckers Going Bankrupt.
May 24th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Thursday, crude for July delivery moved higher after the one-day pullback, closing at $132.19/barrel, up $1.38. July reformulated gasoline gained back 6 cents, to $3.396/gallon.
As we head into the Memorial Day weekend, Tom Kloza, chief oil analyst at the Oil Price Information Service, toted up the cost: “It looks as though we’ll pay about $1.5 billion to $1.6 billion each day during the four-day Memorial Day weekend, and that adds up to $6 billion to $6.4 billion in U.S. motor fuel expense,” he said. “That compares with about $2 billion for the total Memorial Day weekend six years ago.”
With consumers paying about $1 billion more each day for gasoline than they did six years ago, Kloza said, “You really wonder how much the U.S. consumer can take.” And he added that the “more insidious increases are in the diesel segment … A back-of-the-envelope extrapolation would put diesel and heating-oil costs at about $807 million per day currently vs. about $217 million six years ago.”
Net result: “We are seeing numerous bankruptcies among small and mid-sized trucking firms with more to come,” Kloza forecast grimly.
Source: Oil Back on the Upswing – Small Truckers Going Bankrupt.
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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.