Energy Prices Fall As Inventories Rise

With the markets closed for Thanksgiving on
Thursday a number of economic reports were moved forward.

Mortgage Bankers Association’s Weekly Market Index fell 3.4%,
the Purchase Index fell 1.2% and the Refi Index fell 6.9% (report).
Initial Jobless Claims rose 30,000 To 335,000 (report).
The University of Michigan Consumer Sentiment
Index was 81.6 for November. The Labor Department reported that Mass Layoffs
showed a notable decline in October (report).

EIA: Crude Oil Inventories rose 400,000 Barrels,
while Gasoline Inventories rose 200,000 Barrels (report).

Despite a slew of data, traders showed little enthusiasm with
few contracts closed +/- 1% or more in light trading.

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With so much data to digest after yesterday’s FOMC minutes,
Treasuries closed lower. Volume was light, with a lot of today’s action being
put down to position squaring.


The US Dollar Index closed fractionally higher. Read Kathy
Lien’s analysis of yesterday’s Fed minutes and what they mean for the US Dollar



The slight increase in Oil and Gasoline inventories helped
contribute to today’s fall in energy prices. Heating Oil was the largest
decliner in percentage terms.


None of the major metals contracts closed +/- 1%.


Soybeans were the only big mover among the grains, closing
1.71% lower.


Lumber, Cocoa, Cotton and Coffee closed lower, leaving only
Frozen Orange Juice and Sugar to close higher. Sugar closed at a new contract


None of the major livestock contracts closed +/- 1%.

Economic News

MBA Purchase Applications:

Purchase Index – Actual 472.3

Jobless Claims:

New Claims – Actual 335 K Consensus 315 K

University of Michigan Consumer Sentiment:

Sentiment Index – Actual 81.6 Consensus 80.9

Help Wanted Index:

Actual 38

EIA Petroleum Status Report:

Crude Oil Inventories – Actual 0.4 M Barrels

Gasoline Inventories – Actual 0.2 M Barrels

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Ashton Dorkins

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