Crude Oil Declines From Record High, Here’s Why
The Energy Department announced Crude
Oil supplies rose last week to 318 M barrels, +0.2 M barrels.
Supplies of Unleaded Gas fell 4.0 M barrels and Heating Oil supplies fell 1.1 M
barrels.
The strong rally of the past 2-weeks in Natural Gas
-0.32% came to an end today. Natural Gas has been outperforming in the energy
sector and declined less than the other energies. Crude Oil -1.66%
eased back from record highs set this week.
The metals sector put in a strong performance today, helped by
the declining US dollar. Copper +0.54% hit a new record high again today.
Chile’s Codelco increased its 2005 forecast because of strong demand from China.
Codelco is the world’s largest copper producer. Gold +1.14% also
benefited from the weaker dollar.
The grains sector was the weakest today, led lower by
Soybeans -3.26%, Corn -1.84% and Wheat -1.81%.
Sugar +0.99% hit a new contract-high. Sugar was
highlighted in the
TradingMarkets.com Momentum 5 List last night.
Pork Bellies -2.71% closed limit down for the
third day in four.
Economic News
MBA Purchase Applications. Actual 494.5
Challenger Job-Cut Report. Announced Layoffs – 102,971
ISM Non-Manufacturing Survey. Business Activity – Actual 60.5 Consensus 61.5
EIA Petroleum Report. Crude Oil Inventories – Actual 0.2 M Barrels
Ashton Dorkins