Crude Oil Falls As Bush Halts SPR Deposits
In today’s economic news,
Consumer Confidence unexpectedly improved in April
(report),
along with an equally surprising rise in Existing Home Sales in March (report).
Treasuries plunged after the strong reports were released as traders increased
bets the Fed will have to continue raising interest rates. The yield on the 10yr
t-note soared above 5% to 5.071%.
The prospect of higher rates didn’t carry over to the Dollar though, with the US
Dollar Index declining. Most of the Dollar weakness was due to a stronger Euro
as the ECB‘s Gonzalez-Paramo commented on strong growth in the Eurozone
area.
Crude Oil futures fall after Bush
halts SPR deposits
June Crude Oil futures closed lower for the second
consecutive day. Earlier today President Bush announced a temporary suspension
of deposits to the Strategic Petroleum Reserve
(report).
Unleaded Gasoline also closed lower but Heating Oil rose.
Natural Gas was the biggest decliner on a percentage basis, with prices marching
back towards contracts lows set recently.
Gold futures continue to see-saw
June Gold reversed course from yesterday, rallying more than $11.
The past five days have been extremely volatile with price action failing to
close in the same direction twice.
Silver has been trading in similar fashion, reversing the previous days move
once again.
In the softs, Coffee lost more than 4% with traders citing nervousness about
Brazil’s upcoming crop behind the decline.
Economic News
Conference Board’s April
Consumer Confidence Index At 109.6 (report)
Existing Housing Sales Up 0.3% In March To Rate Of 6.92 Mln. Units (report)
President Bush To Halt Strategic Petroleum Reserve Deposits (report)
For more reports and analysis go to our
Economic
News section.
Ashton Dorkins
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