Oil Rebounds
Apr 1st, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Tuesday, oil rallied, with crude for May delivery closing at $49.66/barrel, up $1.05. May reformulated gasoline debuted as front-month contract at $1.40/gallon.
“The rally in the crude oil market is stemming from market influences outside the energy arena,” said Burton Schlichter, of New World Trading. “Strength in the equity market and the weakness in the dollar are dragging the crude oil market higher.”
Analysts at Commerzbank concurred, writing that oil’s recent gain “was largely driven by the financial markets and sentiment, based on hopes that demand would pick up again later on in the year … From a short-term perspective, though, the fundamentals remain difficult, meaning that oil prices were vulnerable to setbacks as witnessed right now.”
If only supply/demand fundamentals are considered, says James Williams of WTRG Economics, oil should be trading below $35 a barrel.
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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.