Energy Prices Decline On Large Inventory Build

Explosions rocked 3 hotels in Amman,
the capital of Jordan today killing at least 23 and leaving more than 120 people
Traders reacted calmly to the news and energy prices were
virtually unchanged as the story broke and continued to decline for the
remainder of the session.

In economic news; the weekly EIA Petroleum Status Report showed a large rise in
inventories. Crude Oil inventories were up 4.5 Mln barrels while Gasoline
inventories rose 4.2 Mln barrels (report).
Energy futures are trading lower along with the energy sectors. A number of oil
company executives gave testimony on Capitol Hill today as the politicians
(in a typically short sighted move) weighed the possibility of imposing a windfall
profits tax.

The Mortgage Bankers Association’s Weekly Market Index rose
2.3%, the Purchase Index was up 6.4% and the Refi Index was down 3.4% (more).

The US Dollar Index closed slightly higher, Treasuries gave
back most of yesterday’s gains.

Most of the commodity markets traded in narrow ranges again
today. Gold moved higher after the terrorist attack in Jordan but apart from
that the impact on the markets was not noticeable. Our best wishes go out to all
those affected by today’s terrible events.

TradingMarkets Commodities Watch List

Price Price Change % Change


Crude Oil (CL) 59.76

Heating Oil (HO) 184.40

Unleaded Gas (HU) 155.00

Natural Gas (NG) 12.31



Gold (GC) 467.40

Silver (SI) 767.80

Copper (HG) 183.15



Corn (C)


Wheat (W) 315.00

Soybeans (S) 588.50



Sugar (SB) 11.28

Coffee (KC) 110.75

Cocoa (CC) 1372.00

Frozen Orange Juice (JO) 122.00

Cotton (CT) 50.41

Lumber (LB) 341.70



Lean Hogs (LH) 67.18

Live Cattle (LC) 91.95


Economic News

MBA Purchase Applications:

Purchase Index – Actual 465.7

Wholesale Trade:

Inventories, M/M Change – Actual 0.6%

EIA Petroleum Status Report:

Crude Oil Inventories – Actual 4.5 M Barrels

Gasoline Inventories – Actual 4.2 M Barrels

Ashton Dorkins