Oil Moves Higher
May 4th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Friday, crude for June delivery pushed to a 5-week high, closing at $53.20/barrel, up $2.08. June reformulated gasoline gained 5.16 cents, to $1.5174/gallon.
Traders made the day about the continuation of hope for an economic recovery, buoyed by the consumer and manufacturing numbers, and that overrode the obvious supply glut.
But analysts remained skeptical. “Market participants are taking solace from any optimistic signs the economy shows,” said Michael Fitzpatrick, of MF Global (NYSE:MF), but “we are more convinced than ever that the market is being set up for a short sharp reversal lower, perhaps to $40.”
The natgas arena showed a spark of life for the first time in a while, with gas closing yesterday at $3.538 per million British thermal units. That’s up almost 25 cents on the week.
“We are still wary of this market until a significant sell-off, possibly to $40, occurs,” said Fitzpatrick.
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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.