Oil Little Changed
May 12th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Monday, crude for June delivery slipped, closing at $58.50/barrel, down 13 cents. June reformulated gasoline fell 2.53 cents, to $1.6802/gallon.
With trading listless, there was little to say about the day’s action, though some blamed nervousness that inventories will continue to rise. Many believe crude is already overbought.
“It has been a long time since any economic data signaled a near-term rise in petroleum demand, and there isn’t any now,” said James Williams, of WTRG Economics. “It is difficult to see prices staying near the current level for more than a few weeks or months.”
But gasoline continues to rise and analysts believe the trend will continue as summer driving season unfolds. Average regular gas prices have jumped nearly 9% over the past two weeks, to $2.226 a gallon yesterday, according to the AAA.
That’s just 5 cents below the price of diesel, which gasoline is expected to surpass by summer. But most consider it unlikely that gasoline will reach last summer’s high above $4 a gallon.
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