Oil Rises Slightly
Posted on: Apr 17th, 2009 | By Doug Casey | Filed under Financial News
In the energy market on Thursday, oil was higher, with crude for May delivery closing at $49.98/barrel, up 73 cents. May reformulated gasoline rose 2.75 cents, to $1.4743/gallon.
“Crude is following stocks again,” said Phil Flynn, of Alaron Trading. “This market is more choppy than chopped salad. It is so indecisive.”
While traders pondered slivers of hope out of the U.S., and Chinese numbers that, while down, were still well into positive territory, reports out of the eurozone left a great deal to be desired.
Industrial production across the 16-nation zone plunged in February, falling off 2.3% from January, according to statistics agency Eurostat. Worse, year over year production was down 18.4%. That marked the biggest annual drop since record-keeping began in 1990.
“This suggests that even our pessimistic 2009 GDP forecast of [a 4% contraction], while still miles away from the consensus, looks increasingly optimistic,” said Daniele Antonucci, European economist at Capital Economics. “The chances are that economic activity might contract much more.” Which is, of course, very bearish for oil consumption.
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.