Crude Oil Surges To New Record High
Crude Oil closed at a
record high despite the Energy Department reporting supplies rose 2.8 M barrels,
to 320.8 M barrels last week. Refineries operated at 95%
capacity and imports rose to 11.1 M barrels per day. Supplies of Unleaded
Gasoline fell 2.1 M barrels and Heating Oil supplies rose 4.3 M barrels.
Iran, the second biggest OPEC producer, continued
work on uranium enrichment while the International Atomic Energy Agency (IAEA)
debated a resolution to halt the process. The US views Iran as a state sponsor
of terrorism and United Nations sanctions remain a possibility if Iran continues
developing nuclear weapons. Iran pumped almost 4 million barrels of oil per day
last month.
Erasing yesterday’s losses the entire energy
complex closed higher today. Crude Oil +2.95%, Harbor Unleaded
+4.09% and Natural Gas +4.68% all surged to new highs, with crude oil
closing at $64.90. Natural gas continues to be the best performer on a
percentage basis. Harbor Unleaded and Natural Gas were both highlighted last
night in the
TradingMarkets.com Momentum 5 List last night.
Copper +1.68% ended a 5-day losing
streak as supply concerns hit the market. Asarco LLC filed for Chapter 11
bankruptcy protection after a 5-week strike halved production at its Texas and
Arizona mines.
Wheat +XXX% and Corn +XXX% led the
grains higher. Coffee +3.32% rallied after the International Coffee
Organization raised 2005/6 production estimates and also revised 2004 higher
numbers but also raised the 2004 consumption estimates by 3%.
Economic News
MBA Purchase Applications: Index level – Actual
498.8
EIA Petroleum Report: Crude Oil Inventories (weekly change) – Actual 2.8 M
Barrels
Treasury Budget: Level – Actual -$52.8 B Consensus -$58.0 B
5-yr Note Auction: Yield – 4.223%
Ashton Dorkins