Crude Oil Drops After OPEC Meeting
In today’s economic news,
the MBA’s weekly market indexes were mixed. St. Louis Fed President William
Poole commented that he expects growth in the housing market to slow but feels
prices will remain high
(report).
OPEC agreed to keep official production at 28 Mln barrels per day. The EIA
reported Crude Oil Inventories rose 6.8 Mln barrels and that Gasoline
Inventories fell 1.1 Mln barrels
(report).
Crude Oil dropped sharply, losing more than 2%, followed closely by Heating Oil.
Natural Gas closed modestly lower. Unleaded Gas was the only contract to close
higher, rising more than 1%.
Treasuries closed flat, after bouncing yesterday from multi-year lows. In the
forex market, the US Dollar Index closed slightly lower. Most of the losses were
due to the Dollar losing ground to the Euro and Swiss Franc.
The softs were mixed. Cocoa and Orange Juice both gained more than 2%, Sugar
lost more than 3% and Lumber dropped almost 2%.
For the second consecutive day, all the grains except Wheat closed lower. The
livestock group was slightly weaker, with only Pork Bellies able to close
higher.
Gold fell $10 after trading lower by almost $15 intraday. Silver also closed
lower, along with Copper.
Mortgage Bankers Association’s Weekly Market Index Rises 0.7%; Refi Index Climbs
2.6%, Purchase Index Dips 0.4%
St. Louis Fed Pres. Sees Home Prices Remaining At High Level (report).
EIA: Crude Oil Inventories Up 6.8 Mln. Barrels; Gasoline Inventories Down By 1.1
Mln. Barrels (report).
Ashton Dorkins
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