Oil Shoots Up
Nov 25th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Monday, oil prices jumped by 9.2%, with crude for January delivery closing at $54.50/barrel, up $4.57. January reformulated gasoline rose 5.25 cents, to $1.1425/gallon.
Again, Citi (NYSE:C) was a driver. “Surging stock markets following the rescue plan … have lifted sentiment and, in the process, lifted crude prices,” wrote Nimit Khamar, analyst at Sucden Research.
“The correlation [with equities] play continues,” said Zachary Oxman, of Wisdom Financial, but he added that, “I don’t see either rally holding … and one thing I’m certain of is that this will be a very thin and very volatile week.”
The weak number out of Germany is also likely to put downward pressure on prices.
And James Williams, of WTRG Economics, noted that “the expectation of bad news on durable-goods and consumer spending due out Wednesday have the potential to reverse any gains” in oil prices.
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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.