Oil Pushes Higher
May 11th, 2009 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market on Thursday, crude for June delivery continued to rise, closing at $58.63/barrel, up $1.92. June reformulated gasoline added 4 cents, to $1.7055/gallon.
Despite crude’s recent strength, analysts remain skeptical. “It looks like the market is hoping the worst is behind us in this recession,” said Tariq Zahir, of Tyche Capital Advisors. However, “while crude has seen some buying lately, the fundamentals are definitely bearish.”
It’s hard to argue with that conclusion after such figures as that total petroleum demand over the past four weeks was 7.9% lower than levels a year ago, the Energy Information Administration reported this week.
Zahir added that, “Some money is being put to work for the reflation trade … With bond yields going higher money is also being shifted into crude and gold.”
And natural gas had a very strong week for a change, with natgas for June delivery rising 23 cents, or 5.6%, to $4.311 per million British thermal units. Natural gas ended the week up 21.6%.
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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.