Why Oil Was Choppy Today

The markets finished mixed
today on the back of
lighter-than-normal volume. The energy markets were back
and forth today, as early reports about a possible OPEC production cut sent
prices higher, then news about sooner-than-expected Iraqi oil production sent
prices back down.

Equities

Equities finished mixed today as the tech sector
finished lower, taking the Nasdaq with it; the future
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finished down
1.50 to close at 1049.00. Meanwhile, the S&P
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was up .40 to finish at 877.30;
and the Dow
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was up 16 to finish at 8270.

Fixed Income

US Treasuries rose for the
first day in three, as some investors speculated the economy will remain sluggish
even after the war ends.
The 10 year contract
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was up 0-185, closing at 114-085; the 30 year
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was up 1-01,
closing at 111-26; and the five year note finished
up 0-130 to close at 112-030
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.

Metals

The base metals gave back some of yesterday’s
gains amid speculative account selling. And copper was down .60 to finish at 72.25
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while aluminum
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was down a small .0005, closing at
.6355. Gold was higher by .70 finish at 322.90
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, while silver
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was up 5.5 to finish at 4.470.

Energy

Crude oil was little changed today as OPEC called
a meeting for April 24 to consider a production cut after prices have tumbled
28% from the highs. Crude was down .06 cents to close at 27.90
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Natural gas futures fell in late trading amid speculation that higher US Midwest
temperatures will curb beating demand. And the commodity was down .034 and
closed at 5.100
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.

Currencies

The US dollar had a bit of a rest today and
finished slightly lower across the board. The USD index
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was down
.44 today and
finished at 101.04.