Will Oil Be In Short Supply?
Stock index futures fell for the fifth straight session as the pending war
with Iraq and disappointing earnings from Eastman Kodak
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the uncertainties brought on by the looming war and corporate earnings was too
much to handle. Eastman Kodak cut its fiscal 2003 forecast and announced that
they’ll cut 2,200 jobs. J.P. Morgan reported a $387 million loss in the
fourth-quarter due to losses related to Enron Corp. In addition, stock index
futures headed south. At the close, the March S&P futures
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to 877, March Dow
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5 to 1004.Â
Crude oil slipped a bit today after yesterday’s report that a vote was
proposed to tanker pilots over the Venezuelan oil strike. Oil prices had
undergone increasing volatility recently as the strike has disrupted oil
production. Adding to this is the potential war with Iraq which could further
disrupt oil supplies and drive prices even higher. Tomorrow the Department of
energy will release its weekly inventory report. March crude
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0.03 to 32.82.
Bonds continued their win streak today on safe-haven buying. The potential
for war continued to heat up today as a report surfaced which suggested that the
Russian military know of a pending attack on Iraq scheduled for mid-February.
The March 10-year contracts
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30-year
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Gold also benefited from safe-haven buying. February gold
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finished up 2.40 to 359.9.