Oil Moves Lower
Jun 5th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Wednesday, crude for July delivery retreated again, closing at its lowest level in a month, $122.30/barrel, down $2.01. July reformulated gasoline plummeted 15 cents, or 4.5%, to $3.20/gallon.
In its weekly inventory report, the Energy Information Administration said that crude stocks fell by 4.8 million barrels for the week ended May 30.
However, refinery utilization was up 1.8%, at 89.7% of capacity, compared with 87.9 % a week earlier, and that led to gains in gasoline, up 2.9 million barrels, and distillates, up 2.3 million.
“Today’s report of a drawdown in crude stocks and builds in distillates and gasoline could show that refiners are beginning to increase production of products in response to higher profit margins,” wrote Thomas Hartmann, of Altavest Worldwide Trading.
But “coupled with slowing consumer demand for gasoline and a strengthening dollar, it’s of little surprise to see crude prices back off,” he added.
Source: Oil Moves Lower
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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.