Crude oil gives back early gains as Rita is downgraded
After an initial move
higher crude oil closed slightly lower on the session as hurricane Rita was
downgraded to a category-4 hurricane. Crude Oil
futures hit $67.90 on NYMEX before pulling back and closing at $66.50.
The latest
Public Advisory issued by the National Hurricane Center still warns that
Rita “remains an extremely dangerous hurricane.” A hurricane warning is in
effect from Port O’Connor, Texas to Morgan City, Louisiana (Strike
Probabilities Chart).
The latest Minerals Management Service
report shows that oil and gas producers in the Gulf of Mexico are continuing to
evacuate facilities (full
report). 73.87% of 819 manned platforms and 64.93% of 134 rigs currently
operating in the Gulf of Mexico have been evacuated. Shut-in oil production is
equivalent to 91.93% of the daily oil production. Shut-in gas production is
equivalent to 65.95% of the daily gas production.
Energy futures were mixed, Crude Oil
-0.45%, Harbor
Unleaded Gasoline +3.29%, Heating Oil +0.09 and Natural Gas
+0.59%.
Treasury prices closed higher,
10yr T-Note +0.11%, 5yr T-Note +0.08% and 2yr T-Note +0.04%.
The softs were mixed, Cotton
+0.15%, Frozen Orange Juice +1.44%, Cocoa -0.67% and Coffee
+1.54%. Lumber +3.27% closed limit up.
All the grains except Soybean Meal closed higher.
Wheat +2.15%, Soybeans +0.48% and Corn +0.73%.
Livestock was mixed, Pork Bellies +2.40%
Lean Hogs -0.08%, Live Cattle +0.60%
and Feeder Cattle -1.11%.
None of the major metals contracts closed +/- 1% today.
Economic News
Jobless Claims:
New Claims – Actual 432 K Consensus 455 K
Leading Indicators:
M/M Change – Actual -0.2% Consensus -0.3%
Ashton Dorkins