Energy Supplies Above Average

rallied after yesterday’s selloff; ten year yields fell 2 basis points to 4.70%.

Crude oil
inventories fell 1.3 million barrels last week, the first decline in a month.
June crude fell 0.61 to close at $63.00. Gas inventories fell for the third week
in a row, by 2.32 million barrels. Summer grade gasoline is now being phased in.
For the period, a Department of Energy report shows that supplies of oil,
gasoline and heating oil are all above their five-year average.

Colder than normal weather boosted demand for
natural gas and sent prices higher.
Temperatures are expected to be below normal in the East for the next week.
Natural gas closed at $6.953, up 8.5 cents.

The Yen
gained on the dollar as traders speculated the central bank may raise rates
soon. Yen closed at 116.93.

production in the Ivory Coast is expected to be 290,000 tons, 40,000 tons more
than last year.

continue at new lows on Mad Cow concerns. Cattle closed at 77.52.