Crude Oil Snaps 6-Day Win Streak

In today’s economic news, Jobless Claims fell more
than expected (report),
Service Sector growth was faster than expected (report)
and Crude Oil Inventories declined
(report).
Of all the news, the jobs data was extremely positive with jobless claims
hitting a 5-year low. However, the numbers could have been distorted by the
holiday season. The big one comes out tomorrow in the form of December Non-Farm
Payrolls.

Treasuries closed slightly lower, after rallying the last 2-days.
The ISM report was the main cause of today’s decline.

The US Dollar Index closed slightly higher but near session lows
after giving back most of the earlier advance. The Dollar Index hit a 2-month
low yesterday after heavy selling in the EUR/USD. The Dollar experienced a wave
of selling recently as traders bet the Fed may stop raising rates sooner rather
than later.

Crude Oil and Heating Oil both closed lower, snapping a 6-day win
streak in the process. However, Natural Gas continues to be the weakest of the
energies after experiencing another day of heavy selling. February Natural Gas
(NGG6) has fallen from an intraday high of $14.95 on December 13 to close at
$9.49 today.


Chart courtesy of FutureSource Xtra

Gold fell more than $8 but closed above session lows after
trading more than $12 lower during the day. Read John Netto’s article on Gold
from earlier today

here
.


Chart courtesy of FutureSource Xtra

March Coffee (KCH6) closed at a 6-month high.


Chart courtesy of FutureSource Xtra

Economic News

EIA: Crude Oil Inventories Down 1 Mln. Barrels; Gasoline
Inventories Up 1.4 Mln. Barrels (report).

ISM Non-Manufacturing Index At 59.8 For Dec. (report).

Initial Jobless Claims Down 35,000 To 291,000 (report).

Ashton Dorkins

ashtond@tradingmarkets.com