Can It Be True? Oil Production To Double In One Week?
Crude
oil briefly hit a two-year high as Venezuelan
President Hugo Chavez called the striking oil workers “traitors” and threatened
possible military action against them. However crude was unable to hold onto its
high today after five straight days of gains. Venezuelan crude exports have
fallen to about 11% of normal levels since the strike began on Dec. 2.
Energy minister Rafael Ramirez expects production will double to approximately
1.2 million barrels a day, but many traders are skeptical.
February crude
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after hitting a high of 33.65.
Gold continued to pullback for the
second day. Its first level of support would be at 340.72 which would be the
38.2% rectracement of the Dec. 2 low to the December 19th high.
February gold
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The dollar was again weaker against
the Yen and Euro. Rising tension with North Korea and the increasing possibility
of war with Iraq has instilled fear in foreign investors causing the dollar to a
three-month low. March dollar
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fell 0.309 to 102.47. March Euro futures
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busted out of a triangle as it gained 0.970 to 84.67.
Treasuries finished higher for the
fifth consecutive session as geopolitical uncertainty has caused investors to
head towards the safety of government debt. The 30-year
contract
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10 year
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8/32.
Stocks ended mixed as the S&Ps bounced
back thanks in part to oil and retail stocks. The S&Ps finished higher despite a
worse than expected Chicago purchasing manager’s index. The index which is a
measure of manufacturing activity in the Midwest fell to 51.3% from 54.3% in
November. However readings above 50 still indicate growth. Meanwhile the Nasdaq
saw its fourth straight day of declines as a report by the Semiconductor
Industry Association reported relatively flat growth in demand this year. The
S&Ps finished up 5.70 at 877.50 while March Nasdaq 100
futures
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