Oil Slightly Lower
Apr 15th, 2009 | By Doug Casey | Category: Financial NewsIn the energy market on Tuesday, oil retreated back below the $50 level, with crude for May delivery closing at $49.41/barrel, down 64 cents. May reformulated gasoline fell just over a half-cent, to $1.4576/gallon.
“The oil market is surprisingly resilient considering the bearish report released by the IEA pointing to weakening global demand,” said Shane Wisdom, president of Wisdom Financial. “Oil is caught in a choppy trading range at the moment and is building a base at the $50 level.”
The IEA predicted that world oil consumption is likely to drop by 1.35 million barrels per day in 2009 compared with a year ago.
However, “The correlation between the equity market and oil at this time is very high and I’d expect this to continue,” Wisdom added.
Traders await today’s inventory figures from the Energy Department, with the consensus favoring a further retreat in stockpiles of about 2.5 million barrels.
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