Crude Oil Futures Close Below $66, Here’s Why
Oil and Gas prices declined as output
resumed at a number of refineries and platforms in the Gulf of Mexico,
and news that all 26 members of the International
Energy Agency (IEA) will make available "the equivalent of 2 million barrels per
day of oil for an initial 30-day period."
(Click here for the IEA Press Release)
Today’s
Evacuation and
Production Shut-In Statistics released by the US Minerals Management Service
showed a dramatic improvement from last week. 23.44% of 819 manned platforms and
20.15% of 134 rigs currently operating in the Gulf of Mexico are still evacuated
or shut down. These numbers represent 58.02% of daily oil production and 41.60%
of gas production. However, the report showed a 9% improvement from yesterday in
crude oil and an 11% improvement in gas.
Click
here for a map courtesy of iMapData Inc that shows Hurricane Katrina’s path
through the rigs and refineries in the Gulf region.
The biggest faller in the energy complex was Harbor
Unleaded Gas -5.89%, followed by Crude Oil -2.38%, Heating Oil
-1.76% and Natural Gas -0.29%.
US treasuries fell after the
ISM Non-Manufacturing
Report rose more than analysts expected. The 10yr T-Note -0.19% had
its biggest decline in 3-weeks, 5yr T-Note -0.20% and 2yr T-Note
-0.11%. The report had the opposite affect on the US dollar which had its
biggest rise in 3-weeks versus the euro.
In the softs, Cotton +3.87% and Lumber +3.08% rallied, while
Coffee -2.28%, Cocoa -0.77% and Frozen Orange Juice -0.70% all fell.
Sugar was
unchanged.
The grains closed higher, led by Soybeans +2.76% and Corn
+1.97%. Wheat +0.16% also closed higher.
Lean Hogs +1.42%, Feeder
Cattle +0.93% and Pork Bellies +1.22% all closed higher.
Economic News
ISM Non-Manufacturing Index:
Business Activity – Actual 65.0 Consensus 59.5
Ashton Dorkins