Crude Declines
Oil slid for a second month after the Paris-based International Energy Agency announced on June 23 the release of 60 million barrels of oil over 30 days from member nations' emergency stockpiles as fighting in Libya pares global supplies. Oil futures fell 4.6 percent on the day the announcement was made and finished the month down 7.1 percent. The quarterly decline of 11 percent was the worst performance since 2008.
Crude for August delivery closed at $95.42 yesterday on the New York Mercantile Exchange, 1 cent above the settlement price on June 22, the day before the IEA announcement. Prices have risen 4.4 percent this year and 26 percent in the past year. August crude slid 0.8 percent to $94.68 a barrel today.
"It's more like an economic soft patch and doesn't look like we are moving into a double-dip recession," Merath said. "The weakness is coming to an end or has already ended, and at the current value it's good to add to positions. If you are an investor, it's good time to buy. If you are a consumer, it's a good time to hedge."